EU in limbo as Washington keeps it waiting on a trade agreement
The uncertainty continued when a trade agreement was reached with the United States.
The aim was to agree on a framework until July 9, which meant that the “mutual” tariffs of US President Donald Trump initially end. The EU apparently was still working on this timeline a week.
But this deadline has passed – before the trade partners reached an agreement.
However, Trump himself proposed on Tuesday.
“Probably two days after sending them a letter. We talk to them.” Trump said on Monday that letters have been sent to 14 countries that summarize new tariff rates on Monday, and the EU has not received such communication.
However, Trump also said that communication between the EU and the US has improved.
“They have treated us very badly until soon, now they treat us very well. Like a different world.” “They were among the hardest to deal with.”
This pointed out the change of tons from Trump, who often had problems with the trade relationship between Washington and Brussels, and showed that it was unfair and unstable.
Accordingly Council of EuropeIn 2024, the trade between the EU and the United States was considered as both goods and services, while approximately 1.68 trillion euros ($ 1.97 trillion). The EU has recorded a lot of trade in the case of trade, but he recorded an open in the service trade and left the overall trade surplus last year at about 50 billion euros.
US Trade Secretary Howard Lutnick claimed that there was an agreement on the table.
“According to loans, the European Union has now made important, real offers, that is, we will reduce our obstacles, we will open our markets to American farmers, farmers, fishermen, really open their markets, and finally allow Americans to be sold to Europe,” he said.
“The president took these agreements at his desk and thinks how he wants to play them.”
The EU is expected to accept a 10% basic tariff, hoping that the EU can negotiate some exemptions or lead to other agreements on certain sectors. This would be below the 50% tariff Trump’s previously called.
In a statement to the European Parliament, the European Commission President Ursula von Der Leyen in his response to the comments of Trump seemed to be careful: “We remain loyal to our principles, defend our interests, continue to work in good faith and prepare for all scenarios,” he said.
Speaking with CNBC’s “Squawk Box Europe” on Wednesday, the German Marshall Fund Senior member Peter Chase said that the problem is not accepted for Europe for Europe, but it is ultimately acceptable for the United States.
“You know, the importer who pays the tariff, not the exporter,” he said. “If there are 10% tariffs of Europeans and Korea has a 25% tariff … An American business pays more than to pay one from Europe for the same product from Korea.”
For this reason, the European enterprises “would cope with it, but the American customer who will pay for it,” he said.
