Commercial conflict: EU hopes for negotiating solution despite the doubled US tariffs

EU chief negotiators Maros Sefcovic still hopes for an early solution in the customs dispute with the USA, even if Washington has recently increased the pressure again. The EU Commissioner Sefcovic responsible for trade announced after a meeting with the US trade officer Jamieson Greer in Paris: “We are going in the right direction.” He spoke of a productive and constructive discussion. Greer was also positive.

The EU had provided the United States a credible starting point for the trade talks, “and I am pleased that the negotiations are going quickly,” said Greer after the meeting with the European. The conversation in Paris was very constructive and shows the EU’s willingness to work on a solution with the United States.

A further escalation in dispute came into force in the morning of European time: a doubling of the import duties announced by US President Donald Trump on steel and aluminum. Since then, a set of 50 percent has been in effect for imports to the USA – previously it was 25 percent.

E-Commissioner surprised escalation

Sefcovic told journalists that the doubling was a surprise. He said Greer that the EU regretted this development and “this is clearly not beneficial to the ongoing negotiations”. The EU exported steel, which is important for the US industry. According to the EU, the latest tariffs are also poor for US companies and consumers.

The aggressive US trade policy also creates a headache. “What we are currently observing is a real zigzag policy of the US government. This stirs up uncertainty, inhibits investments and unsettles of companies that have been established for many years,” said the head of the German Chamber of Commerce and Industry (DIHK), Volker Treier, in Berlin.

He referred to an international survey of 4,600 German companies in March and April, including more than 100 with locations in the United States: Only 14 percent of German companies surveyed in the USA expect an economic improvement in the next twelve months – in autumn 2024 this value was 38 percent.

Trump wants more advantages for the USA

Trump claims to correct trade weights with the tariffs and strengthen domestic industry. Increasing taxes to steel and aluminum should make imports difficult and lead to higher prices. Economists expect noticeable effects for consumers – for example when buying cars, kitchen appliances or canned goods.

The United States was the world’s largest steel importer in 2024. According to the US government, the most important countries of origin are Canada, Brazil and Mexico-among the ten largest exporters to the USA is also Germany. According to the German Industry Association of the Stahl industry association, the United States is the most important sales market for the European steel industry. Aluminum is mainly obtaining from Canada, the United Arab Emirates, China and South Korea.

Trump has already imposed or threatened numerous tariffs to force more advantageous trade agreements in his view. Some of them were legally contested – but the new taxes on steel and aluminum are not affected.

So far, it is unclear how the EU will react. The EU Commission had sharply criticized Trump’s announcement on the weekend and threatened a reaction before the summer. Chief negotiators Sefcovic confirmed in Paris that there would be countermeasures if there is no negotiating solution. As an affront, the procedure is assessed primarily because of the recently intensified negotiations for the settlement of the trade dispute.

If Trump stays with the doubled tariffs on steel and aluminum imports, the EU could impose against tariffs at short notice. The Member States had already cleared the way for it in April. Among other things, US products such as jeans, motorcycles, beef or citrus fruits could make additional taxes. Measures on industrial and agricultural goods such as cars, sweet potatoes and whiskey are also considered.

USA also with China in the clinch

In addition to the EU, Trump has also increased the pressure on China. He liked Chinese President Xi Jinping, he wrote on his Truth Social platform. “But he is very persistent and it is extremely difficult to make a deal with him,” it said.

In the end, both sides blamed themselves not to have complied with agreements or to continue further restrictions. After an agreement in mid -May, there is a break in the previously hot -running customs dispute between the two largest economies in the world. But recently, the United States had blocked the delivery of important turbine parts to China for Beijings and tried to limit China’s access to important chip technology.

What Trump reacted with the latest contribution in his network was initially not clear. The White House has promised that he and XI could still make calls this week.