The European Union does not yet want to escalate its position following the latest threats from US President Donald Trump: the priority will remain negotiations. On Friday 30 May, Mr Trump announced his intention to double existing US tariffs on steel and aluminium from 25% to 50% as of 4 June. The EU’s response to these US tariffs has been put on hold until 14 July, providing the time to reach a broader agreement with the United States (see EUROPE 16619/17). The European Commission, however, could retaliate earlier, if necessary.
“If no mutually acceptable solution is reached, both the existing and possible additional EU measures will automatically take effect on 14 July or earlier if circumstances require”, said Olof Gill, the European Commission spokesperson responsible for trade.
In their view, the US President’s announcements “also undermine our ongoing efforts to reach a negotiated solution with the US”.
These discussions have continued at an accelerated pace since the telephone call between the President of the European Commission, Ursula von der Leyen, and the US President: discussions at a technical level are taking place in Washington this week and the European Commissioner for Trade and Economic Security, Maroš Šefčovič, will meet the US Trade Representative, Jamieson Greer in Paris on Wednesday, on the fringes of the OECD ministerial meeting.
Despite these regular exchanges taking place at all levels, the positions of the two parties remain far apart.
However, one event could tip the balance in the EU’s favour. Last week in New York, the Court of International Trade ruled that the emergency decrees invoked by Donald Trump did not give him the power to impose a base tariff of 10% on all imports, nor to impose reciprocal tariffs on around 60 countries. (Original version in French by Léa Marchal)