On May 26, a sudden piece of news drew attention in the global trade circle: US President Trump announced that, at the request of the EU, the deadline for implementing a 50% tariff on EU goods originally set for June 1 would be postponed to July 9. This means that the previously tense US-EU trade situation has temporarily gained some breathing space.
Just a few days ago, Trump made a strong statement on social media, criticizing the EU for its negative attitude towards trade issues and lack of progress, threatening to significantly increase tariffs on European imports starting in June. This statement caused market turmoil and heightened tension in the EU, as a new tax rate could put immense pressure on the European export industry, especially automotive and high-end manufacturing.
However, the plot soon reversed. According to the office of Ursula von der Leyen, president of the European Commission, she took the initiative to call Trump and expressed a desire to extend the initial 90-day negotiation window during the call. Von der Leyen stated that the EU is willing to accelerate the pace of negotiations, provided that the US restores more negotiation time. Perhaps this positive communication moved Trump, leading him to ultimately decide to postpone the imposition of tariffs.
Review of US-EU Trade Friction
In April of this year, the Trump administration imposed a 20% tariff on most EU goods, escalating tensions between the two sides. He then proposed a 90-day negotiation window during which some high tariffs would be suspended, retaining only a 10% basic tariff, attempting to leverage pressure for a trade agreement more favorable to the US.
However, after several months, the negotiations have progressed slowly, and significant differences remain. After both sides exchanged formal negotiation texts for the first time last week, the EU expressed dissatisfaction with the US proposals and promptly put forth its own new plan, covering multiple areas including labor rights, environmental standards, and economic security, and proposed gradually reducing tariffs on certain agricultural and industrial products to zero.
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Behind the delay, there are various considerations
This negotiation delay seems to be a 'buffer' that the EU has fought for, but it also aligns with the current political rhythm in the US.
For the EU, this gives them more time to coordinate internal positions and avoid the impact of a hasty response; for Trump, as the presidential election year approaches, postponing the trade war helps ease tensions with traditional allies and also showcases his diplomatic flexibility.
However, it should be emphasized that this is only a 'temporary ceasefire.' The final deadline of July 9 is still approaching, and if both sides have not reached a consensus by then, a new round of tariff storms may emerge at any time.
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The world is watching this game
As two of the world's largest economies, trade dynamics between the US and EU can affect the entire global economy. Whether it's tariff adjustments or policy games, they will have far-reaching impacts on global supply chains, export enterprises, and overall economic recovery.
In the next month or so, all eyes will be focused on this tug-of-war. Will a result be achieved? Or will it ultimately lead to a comprehensive confrontation? The answer may lie in each subsequent round of dialogue.
