The European Union is “fully invested” in achieving an agreement with the United States to prevent extensive tariffs, according to the bloc’s trade chief. This statement follows a recent ruling by US judges deeming many of these controversial measures unconstitutional.
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“We are dedicating our time and resources because finding forward-looking solutions remains a top priority for the EU,” declared EU Trade Commissioner Maroš Šefčovič on X, following a recent conversation with US Commerce Secretary Howard Lutnick. He emphasized the importance of maintaining ongoing communication.
However, Mr. Šefčovič refrained from commenting on the unfolding legal situation in the United States.
On Wednesday, the US Court of International Trade issued a decision that blocked most of the tariffs established since former President Donald Trump took office. Yet, an appeals court preserved Trump’s significant import duties on China and other trading partners the very next day.
Previously, Mr. Šefčovič noted that he had engaged in talks with his US counterparts on multiple occasions last week as discussions intensified following rising tensions.
Last Friday, Trump had threatened to impose substantial tariffs on EU products but later postponed those actions, expressing dissatisfaction with the pace of negotiations, stating that talks were “going nowhere.”
To learn more, explore: Which tariffs did a US court block and what happens now?
In April, Trump had introduced sweeping import duties of at least 10% on nearly all trading partners, imposing higher rates on numerous economies, including China and the EU, which have since been suspended.
The recent court ruling also nullifies duties that Trump had imposed on Canada, Mexico, and China using emergency powers, although it does maintain the 25% tariffs on imported autos, steel, and aluminum.
Renewed Trade Tensions with China
Today, President Trump indicated a resurgence of trade tensions with China, claiming that Beijing has “violated” an agreement designed to de-escalate tariff conflicts amidst stagnant negotiations. This commentary came shortly after US Treasury Secretary Scott Bessent noted in an interview with Fox News that trade discussions with China had encountered “a bit of a stall.”
Earlier this month, the two leading global economies had reached a temporary agreement to lower exorbitant tariffs imposed on each other for a duration of 90 days, following discussions among top officials in Geneva.
Yet Trump asserted: “China, perhaps unsurprisingly, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” without delving into specific details.
While addressing Trump’s comments, US Trade Representative Jamieson Greer criticized Beijing for its ongoing actions that restrict essential resources, stating, “The US trade deficit with China continues to be enormous,” highlighting that significant changes in China’s behavior have yet to materialize.
Bessent proposed that a call between Trump and Chinese President Xi Jinping could be on the horizon, indicating that their involvement might help navigate the ongoing situation.
Since returning to office in January, Trump has implemented extensive tariffs on most U.S. trading partners, especially raising rates on imports from China. The back-and-forth implementation of tit-for-tat measures had escalated into triple-digit percentages before the recent de-escalation, which temporarily reduced US tariffs on Chinese imports from 145% to 30%. In return, China lowered its additional tariffs from 125% to 10%.
As it stands, the US tariff landscape still includes a 20% levy recently imposed by the Trump administration on Chinese goods, asserting China’s alleged involvement in the illicit drug trade—an accusation that Beijing has contested vehemently.
The prevailing high tariff levels had caused significant disruptions in trade between the two nations, as businesses paused shipments, waiting for a resolution.
Furthermore, Trump’s tariff initiatives are facing legal scrutiny. A trade court recently ruled that the president exceeded his authority by employing emergency economic powers to justify these expansive tariffs, effectively blocking the most sweeping levies since his return to office. However, this ruling is currently on hold pending an appeals process, leaving in place targeted tariffs on sectors such as steel and automobiles.
“The path toward trade resolution remains complex, but both sides understand the importance of finding common ground,” remarked a senior trade analyst.
As the situation evolves, all eyes will be on how both the EU and the US navigate these intricate trade relationships, and the potential implications for global markets.
Edited By Ali Musa
Axadle Times International – Monitoring.
