Tariff Tensions: Navigating Transitional Phase of EU-U.S. Trade Relations

The EU is in a transitional phase with the U.S. due to a new import surcharge imposed by Trump, risking last year's trade deal. The EU's Trade Commissioner is in talks with U.S. representatives, with a deadline of July 24 to resolve the issue. Negotiations are ongoing.

The European Union is currently navigating a transitional phase in its trade relations with the United States following a new import surcharge imposed by President Donald Trump. The surcharge poses a significant risk to the trade agreement reached between the two last year, according to European Trade Commissioner Maros Sefcovic.

Sefcovic informed the European Parliament that his U.S. counterparts, Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, have assured him of their commitment to the previous agreement. The commissioner highlighted the urgency of the situation, noting that the 10% surcharge could remain in place for up to 150 days, with a resolution deadline set for July 24.

The temporary surcharge follows a Supreme Court ruling against Trump's global tariffs. The EU is urging its parliament's trade committee to vote on removing EU import duties by March to progress negotiations. Meanwhile, U.S. tariffs on over 400 products remain contentious, particularly affecting industries such as steel and aluminum.