Description: After threatening to fast-track the imposition of tariffs on the European Union, US President Donald Trump reextended the deadline to the original date, 09 Jul, following a conversation with EU Commission’s President, Ursula von der Leyen. Last week, Trump threatened to impose additional 50% tariffs on EU goods coupled with the already imposed 25% on aluminum and steel and 10% of the so-called baseline tariffs. The US President’s extension was reportedly due to a productive and promising phone conversation with Von der Leyen after which both leaders agreed to fast-track negotiations being held between US Commerce Secretary Howard Lutnick, trade representative Jamieson Greer and EU’s Trade Commissioner Maros Sefcovic. The US already secured a groundbreaking trade deal with the UK and is actively engaged in trade negotiations with China, with EU allegedly still remaining to resist Trump’s tariff policies.
Impact: The US – EU trade negotiations have arrived at a standstill where both sides aim to draw more favorable trade conditions under pressure from fluctuations caused by Trump’s tariffs. Recent indications have displayed that the dissolution of transatlantic relations between EU and the US surmounts trade and security imposing considerable implications on the future conceptualization of multilateral relations. Trump’s refinement of narrative towards Russia, coupled with diametrically opposing positions on the war in Ukraine, ruined longstanding bilateral relations with the EU, which is evidently attempting to adopt a stronger stance on its position regarding trade and foreign policy with the US. With retaliatory mechanisms set to be launched by both sides if negotiations fail, the US and EU are expected to rapidly agree towards some form of an initial agreement, in the short to mid – term, where the broad strokes of the bilateral trade partnership would be outlined.