EU and US Negotiations on Trade Agreements: Possible Compromises and Future Global Impact
In the current international geopolitical landscape, the trade relations between the European Union and the United States are at a crucial crossroads. The EU continues to diligently work towards reaching a mutually acceptable trade deal with the US, aiming to strike a balance between protecting its economic interests and establishing stable, beneficial agreements for both parties. According to Bloomberg, the European side is prepared to accept a deal involving a flat 10% tariff on a wide range of European exports, but insists that Washington commit to lowering tariffs in critical sectors such as pharmaceuticals, alcohol, semiconductors, and aerospace manufacturing. This move represents a significant step toward reducing trade barriers, as the US is also considering quota systems and exemptions that would effectively lower existing 25% tariffs on cars and auto parts, as well as 50% tariffs on steel and aluminum, which are vital for the European economy. The situation stems from the ongoing trade disputes initiated by former US President Donald Trump, who imposed tariffs on almost all trading partners, claiming the measures were necessary to boost domestic manufacturing and counteract unfair competitive practices. The European Commission reports that in 2024, the EU exported goods to the US worth over €52.8 billion, primarily driven by automobiles and auto components. Additionally, the EU exports substantial quantities of steel and aluminum to the US, totaling around €24 billion, with Germany, Italy, and France as leading exporters. Both sides are keen to reach interim agreements that would extend negotiations beyond the upcoming deadline of July 9, allowing for the resolution of emerging disputes and preventing escalation of tariff conflicts. The focus remains on reducing both tariff and non-tariff barriers, as well as establishing areas for cooperation in strategic sectors such as energy, artificial intelligence, and natural gas. By the end of June, the EU had received proposals from the US regarding tariffs and trade restrictions, though specific details remain undisclosed. The negotiations are expected to continue as both parties seek to craft compromises that could reshape the global trading landscape in the coming years.