Transatlantic Trade Tensions: Tariffs Take Center Stage

Amid escalating trade tensions, the U.S. plans to impose further tariffs on the European Union, delaying trade negotiations. President Trump aims to address trade imbalances by focusing on key sectors. The EU, meanwhile, prepares countermeasures in response to these unilateral U.S. decisions.

The United States has informed the European Union that no trade negotiations will commence until it has imposed additional tariffs on the bloc, according to EU diplomats. President Trump's administration has already levied 25% tariffs on steel and aluminium imports and is planning a similar duty on car imports.

During a meeting in Washington, European Trade Commissioner Maros Sefcovic attempted to negotiate but was met with resistance. The message from the U.S. was clear: further tariffs are a precursor to any trade talks. The proposed reciprocal tariffs could reach up to 25%, although the exact figures remain uncertain.

Trump has identified auto, pharmaceutical, timber, semiconductor, and metal sectors as domestic priorities. Meanwhile, the European Commission is readying counter-measures potentially affecting $28 billion worth of U.S. imports, aiming for implementation by mid-April, with the final strategy to be unveiled soon.

(With inputs from agencies.)