EU Gears Up for Trade Talks with U.S.: A 90-Day Countdown

The EU finance ministers are strategizing to secure a trade deal with the U.S. within a 90-day period following the postponement of higher U.S. tariffs. If unsuccessful, the EU plans to discuss response mechanisms to the tariffs, which could significantly impact economic growth and key industries.

With the U.S. postponing higher tariffs by 90 days, European Union finance ministers are crafting strategies to strike a trade deal with Washington. President Trump delayed the reciprocal 20% tariffs, keeping a 10% rate active, while expecting Europe to increase American energy purchases.

EU ministers emphasize the importance of utilizing this window wisely. Polish Finance Minister Andrzej Domanski highlighted the need for a beneficial deal for Europeans, although the EU is prepared to retaliate if talks fail. German Finance Minister Jorg Kukies warned of potential discussions on response strategies if negotiations collapse.

Key industries, including steel and aluminium, are at risk from existing 25% U.S. tariffs. The EU aims to mitigate economic impacts, potentially impacting GDP by 0.3% to 1.0%. Ministers will also focus on reducing intra-EU trade barriers to bolster their position against U.S. tariffs.

(With inputs from agencies.)