Trade Tensions Rise as EU-US Dialogue Faces Tariff Challenges

Trade negotiations between the European Union and the United States are progressing positively, according to top trade negotiators from both sides. However, European officials expressed concern regarding the U.S.'s decision to double tariffs on metals, which is perceived as a hindrance to the ongoing discussions.

In parallel, global trade disruptions continue to intensify with China's restrictions on critical mineral exports causing European factories to halt production and BMW to report supply chain impacts. Despite these challenges, Maros Sefcovic, EU's trade negotiator, described his recent meeting with U.S. Trade Representative Jamieson Greer as constructive, indicating progress in diversifying their trade talk approaches.

Amidst these talks, U.S. President Donald Trump increased tariffs on steel and aluminum imports to 50%. While Britain remains exempt under a tentative trade agreement, other trading partners are urged to propose deals to mitigate the expansive new tariffs. Businesses like Remy Cointreau and Voestalpine face uncertainty, with the latter warning of potential earnings hits. The global market, however, remains hopeful, betting on a possible easing of tariffs by the U.S.

(With inputs from agencies.)