American President Donald Trump is at it again. He has demanded that European leaders tighten trade conditions. What a twist!
Officials from the White House informed European Union leaders that President D. Trump is expected to demand additional concessions for a trade agreement, including a base tariff of 15% on most European goods. According to analysts from The Wall Street Journal, this move surprised EU negotiators who had been preparing for a 10% base tariff. The shift in position prompted Germany, which had hoped for a compromise, to support France’s tougher stance on the matter.
Following the US president’s statement, EU member states turned to the European Commission to prepare countermeasures. Among these are the introduction of tariffs on American goods, restrictions on access to public procurement, and reductions in digital services.
EU officials are also ready to use the bloc’s special “anti-coercion instrument,” which allows for the application of retaliatory trade and investment measures against economic pressure.
Despite growing tensions, the United States and Europe are aiming to reach an agreement before the August 1 deadline. Earlier, US Secretary of Commerce Howard Lutnick expressed hope regarding this matter. However, European diplomats are less optimistic. They believe that if negotiations fail, all options will be painful.
Of particular importance is the daily trade turnover between the United States and the European Union, amounting to more than $5 billion. If an agreement cannot be reached, the situation will deteriorate, causing significant damage to global trade.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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