The EU Claims that EU-US Trade Talks Have Gained “New Momentum” and Plans to “Progress Rapidly”
Following Trump's announcement to postpone the imposition of 50% tariffs on EU goods, the EU-US trade negotiations have entered a new phase of opportunity. On May 27th, the European Union signaled its intention to “progress rapidly” in trade talks with the United States, aiming to reach an agreement before the deadline and prevent an escalation of trade conflicts.
Maroš Šefčovič, the EU Trade Commissioner, was the first to disclose the negotiation progress. He stated on social media that he had held “productive conversations” with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer. The three parties committed to advancing the negotiations in a “constructive and focused manner” and pledged to maintain close communication in the future. On the same day, Paula Pinho, a spokesperson for the European Commission, further emphasized at a press conference that European Commission President Ursula von der Leyen and Trump had reached a consensus on “expedited negotiations,” and the EU was ready to facilitate the agreement's conclusion.
The acceleration of these negotiations is directly attributed to Trump's decision to delay the tariffs. On May 25th local time, Trump announced via social media that, following “pleasant conversations” with von der Leyen, the 50% tariff measures on the EU, originally set to take effect on June 1st, would be postponed until July 9th. Von der Leyen had previously stated that the EU was prepared to “advance negotiations swiftly and resolutely.” This tariff delay undoubtedly provides both sides with a valuable buffer period.
Looking back at EU-US trade relations, long-standing structural contradictions have consistently hindered negotiations. The Trump administration has always prioritized reducing the trade deficit, demanding that the EU unilaterally cut tariffs on agricultural products, automobiles, and other sectors. Additionally, the US has pushed for concessions from the EU on issues such as investment access, regulatory standards, and digital taxes. For instance, the US has repeatedly accused the EU of erecting trade barriers against American agricultural products, restricting the entry of US beef, corn, and other goods into the European market. In the automotive sector, the US argues that the EU's tariffs on imported cars are higher than those imposed by the US on EU cars, creating an unfair competitive environment.
In contrast, the EU adheres to the principle of “mutual benefit and win-win outcomes,” advocating for the development of framework texts through joint consultations. The EU hopes that the US will lift tariffs on European steel and aluminum products and opposes the US's unilateral approach to taxing digital services. The EU contends that US tariffs on European steel and aluminum products have severely damaged European industries, and in the case of digital taxes, EU companies face intense competition in the US digital market while bearing unreasonable tax burdens. These disagreements on key issues have significantly slowed down previous negotiations and even led to repeated impasses.
While the tariff delay offers a glimmer of hope, the future of the negotiations remains uncertain. Market reactions indicate optimism, with European stock markets rising and the euro strengthening slightly against the US dollar upon the news, reflecting positive expectations of an EU-US trade deal. However, analysts question whether the July 9th deadline will prompt both sides to reach a compromise. On one hand, the Trump administration's tariff policies have been inconsistent, often using tariff threats to pressure trading partners. On the other hand, the EU itself faces internal divisions regarding agricultural subsidies and digital regulations, which will require time to reconcile.
The outcome of the EU-US trade negotiations will have far-reaching implications, not only for the economies of both parties but also for the global trade landscape. If the negotiations fail, the large-scale US tariffs on the EU could trigger a chain reaction, potentially leading to the reorganization of global supply chains, increased production costs for enterprises, and even the resurgence of trade protectionism in other economies. Conversely, a successful agreement would boost confidence in global trade stability and serve as an example for trade negotiations among other economies.
As July 9th approaches, both the EU and the US will face significant pressure. Whether the two sides can overcome their differences and reach an agreement in the coming weeks will be a focal point in the global trade arena. We will continue to closely monitor the progress of these negotiations.