EU and USA: Trade in crisis – Can tariff increases be averted?

EU and USA: Trade in crisis – Can tariff increases be averted?

A lot is happening in the current trade landscape between Europe and the USA. Yesterday, June 14, 2025, the President of the European Commission, Ursula von der Leyen, spoke by telephone with US President Donald Trump. Both leaders are committed to reaching a "good" trade deal before July 9, french.news.cn reports. The conversation took place just a day before the high-profile G7 summit and was intended to ease strained trade relations between the two economic giants.

However, the situation could not be more critical. Trump previously announced he would increase tariffs on steel and aluminum imports from Europe to 50%, sparking concerns among European manufacturers. They are seriously calling for an end to these excessive trade restrictions, which are perceived as catastrophic for the industry. EU Trade Commissioner Maros Sefcovic said the industry could suffer significantly under these circumstances, making the need to move forward with talks all the more urgent.

Under pressure of time

On May 26, von der Leyen and Trump announced that they would extend the pause on tariffs until July 9, after the originally planned increase fell on June 1. The EU leadership has made it clear that it is ready to act actively and decisively in the negotiations. This could be a turning point as ongoing tariff conflicts fuel fears among many European companies.

What is particularly explosive is the fact that the EU threatened to take countermeasures in May. One possible plan is to impose tariffs on US imports worth 95 billion euros if negotiations are unsuccessful. This supports the position of the EU, which is determined to defend its trade interests in a respectful framework, as repeatedly emphasized by Sefcovic. Trump has previously described Europe as “worse than China” on trade matters, which has further increased tensions.

Shared future?

With Trump's election victory in November 2024, the European Parliament has expressed concern about future transatlantic relations. Leading MEPs urged continued cooperation, particularly with regard to discussions about the looming tariffs. Polish Minister for European Affairs Adam Szłapka highlighted the importance of open and fair trade, while Bernd Lange, chairman of the Committee on International Trade, pointed out that the possibility of counter-tariffs could be a bogeyman that could, in turn, boil political waters.

The coming weeks could therefore be decisive in determining whether trade relations between the EU and the USA head in a positive direction or whether they slide further into crisis. Given the economic challenges and geopolitical tensions, it remains exciting to see how this political chess game will develop.

Further information on the latest developments can be found in the reports from [lemonde.fr](https://www.lemonde.fr/economie/article/2025/05/26/droits-de-douane-entre-les-etats-unis-et-l-ue-d onald-trump-et-ursula-von-der-leyen-annoncent-une-prolongation-de-la-pause-jusqu-au-9-juillet_6608394_3234.html) and [europarl.europa.eu].