EU-US Trade Talks Intensify Before Deadline
A high-level EU delegation has arrived in Washington for crucial negotiations aimed at preventing new US import tariffs scheduled to take effect on July 9. This diplomatic push follows recent NATO summit pleasantries as trade tensions resurface between the transatlantic partners.
Stakes and Timeline
Without a breakthrough agreement, the European Union faces punitive tariffs on goods and services exported to the US. The negotiations remain shrouded in uncertainty, though EU member states have urged the European Commission to accelerate progress.
Trump's Trade Policy
President Trump continues to target nations with significant US trade deficits. His April 1 tariff proposal would increase costs for European products in American markets, potentially impacting US consumers and businesses. While the tariff implementation date has been postponed multiple times, threats of increases from 20% to 50% persist.
Existing Impacts
Current 50% tariffs on steel and aluminum already affect €3.3 billion in Dutch exports annually. The new measures would expand these economic pressures across more sectors.
Negotiation Dynamics
Despite the EU's centralized negotiation mandate under Commission President Ursula von der Leyen, Trump has repeatedly attempted bilateral talks with individual member states. During the NATO summit, he specifically threatened Spain over defense spending disagreements.
EU Divisions Emerge
Internal EU positions vary significantly as the deadline approaches. Italy and Germany appear willing to accept 10% tariffs without reciprocal EU measures, similar to the UK's earlier agreement with Trump. France advocates for matching EU tariffs, while Dutch Prime Minister Schoop maintains his preference for complete tariff elimination despite recognizing its improbability.
Tech Regulation Factor
The EU has firmly rejected US suggestions to modify the Digital Markets Act (DMA) - landmark legislation designed to limit Big Tech's market dominance. The Commission stated: "This is non-negotiable. It would be unfair to companies already compliant with these rules." The DMA imposes strict obligations on gatekeeper platforms including interoperability requirements and prohibitions against self-preferencing.
Next Steps
Following initial technical discussions, EU Commissioner Maroš Šefčovič will join negotiations in Washington tomorrow as both sides race against the July 9 deadline.