The European Union (EU) has decided to accelerate trade negotiations with Washington in response to US President Donald Trump's threat of 50% tariffs on June 1. EU Trade Commissioner Maros Sefcovic announced that he will lead the talks covering critical sectors.
The negotiations, which will focus on strategic areas such as steel, aluminum, pharmaceuticals, aircraft and semiconductors, will address not only tariffs but also non-tariff barriers in the European Commission's new trade strategy.
Last week, President Trump expressed his discontent with the European Union's litigation processes, value-added taxes, corporate fines and trade barriers against American companies and announced that he would impose a 50% tariff as of June 1. However, Trump postponed this decision until July 9 following a meeting with European Commission President Ursula von der Leyen on Sunday.
In its first proposal last week, the EU side presented a proposal for cooperation, including mutual tax cuts, strategic investments and cooperation on global challenges. However, this proposal was rejected by the US, escalating the threat of tariffs.
In a phone call on Monday, Sefcovic contacted US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer to explain the negotiation process.
EU officials have discussed various measures, including imposing tariffs on US products worth EUR 21 billion and EUR 95 billion in the event of a failure of the negotiations. However, many officials see the chances of a good deal in the current circumstances as low.
European officials claim that it is not entirely clear what the US administration wants and that it remains unclear who speaks for Trump, while the US side argues that the EU has been unfair to American companies through regulations and lawsuits.
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