Customs conflict: EU urges pragmatic solution with the USA!

Customs conflict: EU urges pragmatic solution with the USA!

In the heated debate about trade tariffs between the United States and the European Union (EU), another chapter is emerging. Moritz Schularick, President of the Institute for Economy in Kiel, recently emphasized that US President Trump's trade deals are often short-term and that a permanent return to the customs level before Trump's tenure (between 2-3%) remains unrealistic. Rather, Schularick recommends that they are based on the current tariffs of around 10%, which he sees as a pragmatic solution. The German Chancellor Merz has also commented in this sense and praised a uniform European position that makes it difficult for the United States to enforce its demands. This is how [Deutschlandfunk] reports (https://www.deutschlandfunk.de/oeconom-schularick-ifw-kiel-raet-eu-zu-pragmatic-zoelle-in-hohee-zehn-zehn-huk-100.html) on the topic.

But what does the current situation look like? In April Trump introduced a base customover of 10 % to a variety of EU imports. Previously, he had already collected special tariffs on specific products such as steel, aluminum and cars. These geopolitical tensions mean that the EU does not remain idle. According to ZDF, special tariffs are on US exports worth up to 95 billion euros that could affect industrial and agricultural products such as cars and whiskey. The deadline for negotiations that Trump has scheduled for 90 days is running towards the end of July.

EU shows determination

Ursula von der Leyen, the President of the EU Commission, made it clear that the EU is determined to reach an agreement. It emphasizes that the tariffs of the United States are unjust and are not compatible with the rules of the World Trade Organization (WTO). Trade Commissioner Maroš Šefčovič warns of other tariffs that may affect exports worth up to 170 billion euros from the EU. These tariffs represent a significant threat to 97 percent of EU exports to the United States. It is a race against time, because if the EU cannot convince Trump, new punitive tariffs threaten.

The EU is not just passive actors in this situation. She has already considered the possibility of suing the USA at the WTO and is also planning to introduce export restrictions for products worth 4.4 billion euros, which include steel scrap and chemical products. German companies have already made the uncertainty and constant threats to search for alternative sales markets.

transatlantic relationships in focus

The geopolitical tensions are particularly interesting because they come at a time when Trump gains influence after his re -election in November 2024. The European dialogue about transatlantic relationships is still actively managed. The European Parliament has made it clear that it is ready to strengthen the cooperation and to find a common voice against customs threats. Adam Szłapka, the Polish Minister of European Affairs, underlines the advantages of open and fair international trade and criticizes US policy as harmful to companies and consumers. Bernd Lange, the chairman of the Committee on International Trade, also addressed the possibility of counter-tariffs to protect the EU interests.

How the whole thing continues remains to be seen. However, it is clear that the EU and the United States have to operate in a complex trade environment that has both challenges and opportunities. The next wall could be dismantled by negotiations or also built up by new tariffs. The next few weeks should be decisive.