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Goldman Sachs analysts indicate that U.S.-EU trade talks are stalled, with significant disagreements over U.S. tariffs. While the U.S. views these tariffs as a starting point for negotiations, the EU sees them as a maximum limit to avoid retaliation. As the July deadline approaches, an extension of the tariff pause is anticipated, potentially accompanied by minor concessions, but new broad sectoral tariffs from the U.S. could provoke a moderate EU response, creating an unstable equilibrium.
President Trump has announced new tariffs, including a 10% increase on all countries and specific measures against key trading partners like China and the EU, prompting threats of retaliation and negotiations. Analysts predict economic slowdowns and potential escalation, with the EU preparing countermeasures and the U.S. effective tariff rate expected to rise significantly. The situation remains fluid, with the possibility of further tariff increases if retaliatory actions occur.
Trump's recent tariff announcements have sparked global reactions, with the EU and China expressing strong dissatisfaction and preparing countermeasures. Analysts predict that while some tariffs may eventually decrease, the immediate impact could lead to economic slowdowns in the U.S., with effective tariff rates potentially rising significantly. The EU is expected to retaliate strategically, particularly targeting U.S. services, as tensions escalate in this trade conflict.
Filippo Taddei
People
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US EU Trade Talks Stalled Amid Tariff Disputes and Uncertain Future
10:16 24.05.2025
Trump announces new tariffs prompting global trade tensions and potential negotiations
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15:44 03.04.2025
global trade tensions escalate as trump announces new tariffs and retaliation plans
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12:30 03.04.2025
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