US President Donald Trump may consider extending the July deadline for higher tariffs on imports, according to recent statements from the White House.
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Originally set for July 9, this deadline marks when punitive tariffs on a range of EU goods are scheduled to be imposed, which has prompted the EU to promise approximately €95 billion in retaliatory measures.
When asked about the possibility of extending the pause on tariffs, Press Secretary Karoline Leavitt commented, “Perhaps it could be extended, but that’s a decision for the president to make.” She further mentioned that “the deadline is not critical,” indicating some flexibility in the timeline.
Leavitt highlighted that Mr. Trump retains the authority to “pick a reciprocal tariff rate that he believes is advantageous for the United States.” This underscores the strategic considerations at play in these negotiations.
Regarding the ongoing trade discussions, Leavitt noted that US Trade Representative Jamieson Greer is “working very hard” and has had “good and productive discussions with many of our key trading partners.” This hints at potential progress amidst the complexities of international trade.
In a related update, European Commission President Ursula von der Leyen stated that the EU has received the “latest US document” concerning further negotiations on tariffs. “All options remain on the table,” she told reporters after an EU summit in Brussels, emphasizing the EU’s readiness to engage while also preparing for any unfavorable outcomes. She added, “Our message today is clear. We are ready for a deal. At the same time, we are preparing for the possibility that no satisfactory agreement is reached. This is why we consulted on the rebalancing list and we will defend the European interest as needed.”
In the midst of these discussions, Taoiseach Micheál Martin expressed a strong desire for a trade agreement with the United States during a summit of EU leaders in Brussels. “Everybody within the European Union is focused on arriving at a negotiated settlement with the United States by the ninth of July, which I think is extremely important to give certainty to markets, investors, workers, and industry,” he noted.
While he acknowledged the complexity of the negotiations, Martin emphasized the necessity of effort, stating, “Every effort has to be made to get a landing zone that we can live with. It’s not ideal. It’s not optimal. Europe doesn’t want tariffs, but we have to deal with the situation that is before us.”
The Taoiseach pointed out that Ireland has sought to exempt agrifood products, medtech, and aviation from the EU’s countermeasures to safeguard crucial sectors of the Irish economy and mitigate potential US retaliation. “There is no painless tariff war,” he remarked, emphasizing the need for unity within Europe as negotiations progress. “I do genuinely detect an atmosphere that’s focused on getting a deal, both on the US side and on the European Union side.”
EU diplomats indicate that a growing number of EU nations favor a swift resolution to the ongoing negotiations. French President Emmanuel Macron reiterated his support for a quick and practical trade deal, while also cautioning against accepting unbalanced terms.
Similarly, Belgian Prime Minister Bart de Wever argued, “A trade war makes both sides of the Atlantic poorer and is just stupid.” He echoed the sentiment of calm negotiation championed by the commission president, stating, “If that were to end in one-sided and unfair tariffs, then we have to take proportionate and very targeted countermeasures.”
As it stands, the EU is already facing US import tariffs of 50% on steel and aluminum, 25% on cars and car parts, and a 10% tariff on various other EU goods. These tariffs, threatened to increase to 50% without a resolution, have raised significant concerns among European leaders.
To date, the only finalized trade deal the United States has achieved is with the United Kingdom, which still maintains a broad 10% tariff. “There is a group of EU countries that want to protect companies by seemingly accepting something they have gotten used to – a 10% baseline,” remarked one EU diplomat.
The European Union has agreed to potential tariffs on €21 billion worth of US goods and is currently deliberating a new package that may involve up to €95 billion in US imports. Among the proposed rebalancing options is a tax on digital advertising, which would target US tech giants like Google, Meta, Apple, and Microsoft, impacting the significant trade surplus the US enjoys with the EU.
The bloc currently holds a trade surplus with the US in goods and has proposed an EU-US deal to reduce tariffs on industrial goods to zero, alongside potential increased EU purchases of liquefied natural gas and soybeans. However, Washington appears less interested in these proposals, focusing instead on perceived barriers such as the EU’s value-added tax and environmental standards.
In conclusion, the outlook for these negotiations remains complex, with multiple factors at play and significant stakes for both sides as they navigate this critical trade landscape.
Edited By Ali Musa
Axadle Times International – Monitoring.
