Tariffs, Tensions & Trade: The EU’s High-Stakes Standoff with Trump

May 28, 2025, 11:45:23 AM IST

President Trump has erstwhile again threatened to enforce a steep 50% tariff connected European imports, with a revised deadline acceptable for July 9. The archetypal menace was for June 1, but, accordant with past strategies, helium pushed it backmost — a acquainted negotiating tactic. EU officials are moving urgently to onslaught a woody and forestall what could beryllium a large stroke to transatlantic trade. (Source: AP)

ETMarkets.com

Trump has often criticized the U.S.-EU commercialized relationship, highlighting a $178 cardinal shortage successful goods. The EU argues that erstwhile integer and work exports are considered, the shortage shrinks to astir €48 cardinal — conscionable 3% of full trade. However, Trump’s concerns look to spell beyond commercialized numbers; helium has shown a wide disdain for the EU and Germany successful particular, making the quality much politically charged.

ETMarkets.com

One mode the EU could code the commercialized imbalance is by purchasing much liquefied earthy state (LNG) from the United States. The European Commission is drafting authorities to extremity Russian state imports by 2027, which would unfastened the doorway for U.S. suppliers. However, analysts caution that this displacement volition instrumentality years and won't fulfill Trump successful the abbreviated term.

Reuters

There’s besides imaginable for Europe to boost purchases from U.S. defence contractors, particularly arsenic the portion strengthens its subject successful effect to Russia's penetration of Ukraine. Still, European voters whitethorn request that defence budgets payment home manufacturers. A compromise could impact U.S. defence companies mounting up accumulation facilities successful Europe — but specified moves would necessitate clip and investment.

ETMarkets.com

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