EU and U.S. in Trade Tango: Tariff Tensions and Negotiation Challenges

The European Union has temporarily avoided a major tariff hike from the United States, following a call between U.S. President Donald Trump and European Commission President Ursula von der Leyen. Originally set to enact on June 1, the tariffs have been postponed to allow for a July 9 negotiation deadline.

Negotiations between the two regions aim to establish a mutually advantageous trade deal. The EU is advocating for zero tariffs on industrial goods and is open to increasing imports such as soybeans and liquid natural gas as they aim to phase out Russian gas by 2027. While no concrete agreements were made, discussions remain active.

The U.S., focused on reducing its trade deficit with the EU, has a list of demands, including addressing non-tariff barriers like value-added tax and food safety standards. Despite the challenges, there's optimism for cooperation on areas such as steel overcapacity and AI technology.

(With inputs from agencies.)