The EU and US prepare for crucial negotiations in Paris to prevent a potential tariff war amid rising tariff threats on metals.
US New Tariffs
US President Donald Trump signed a directive raising tariffs on European steel and aluminum from 25% to 50%. The new tariffs will take effect on July 9 unless an agreement is reached. European companies already face a 10% tariff on various exports, with cars and auto parts taxed at 25%.
Negotiations in Paris
Talks between EU Trade Commissioner Maroš Šefčovič and US Trade Representative Jamieson Greer take place during the OECD summit in Paris. Despite the EU's proposed concessions, the US has not provided clear responses. If negotiations fail, the EU considers imposing tariffs on US goods worth up to €95 billion, including Boeing airplanes and American cars.
Impact on Global Economy
The tariff increases have already impacted financial markets and global trade forecasts, raising concerns among businesses about potential cost increases and shipping delays. Analysts warn that ongoing disputes could hinder economic recovery and result in a long-term trade break between the two major economies if no agreement is reached.
The escalating trade tensions between the EU and the US are significant, and the outcomes of the upcoming negotiations in Paris could have lasting effects on the global economy.
