Trump is also trying to decouple the EU, the ‘Mini China’


Trump is also trying to decouple the EU, the ‘Mini China’, but often ‘worse’ than China

The European Union has reportedly not received a letter from the Trump administration demanding "best offers" on trade negotiations by Wednesday, despite a draft letter from the U.S. Trade Representative’s office indicating urgency to finalize deals before a July 9 tariff deadline, according to Reuters. EU Trade Commissioner Maroš Šefčovič is scheduled to meet U.S. Trade Representative Jamieson Greer later this week, with further talks planned on the sidelines of the OECD Ministerial Council Meeting in Paris on June 3-4.

This development follows a U.S. push for countries, including the EU, Vietnam, Japan, and India, to submit comprehensive trade proposals, including tariff reductions and commitments on digital trade and economic security. The EU, maintaining its offer of mutual zero tariffs on industrial goods, has gained leverage after a U.S. court questioned the legality of Trump’s "reciprocal" tariffs, though an appeals court temporarily reinstated them. Despite the reported absence of the letter, the EU is committed to advancing talks swiftly, aiming for a deal by July 9, as confirmed after a call between European Commission President Ursula von der Leyen and EU-officials-say.

The situation remains fluid, with the EU emphasizing a deal based on mutual respect, not threats, amid ongoing uncertainties in U.S. trade policy. Businesses, particularly in sectors like automotive and pharmaceuticals, express concern over potential tariff hikes to 50% if no agreement is reached, which could disrupt supply chains and raise consumer prices. The EU’s strategy continues to focus on a balanced agreement, rejecting concessions on non-trade barriers like food safety standards or taxation.

Ashish Ghosh is a NCFM certified research analyst for the global and Indian financial markets. With more than 15 years of experience in the capital market, Ashish has been published in high-profile online media regularly. He holds a B.Sc. in Math along with NCFM certification for Technical and Fundamental analysis. Presently, he is working with iForex as a financial analyst/content writer since 2017, analyzing mainly the global and Indian markets. You can reach him for professional levels trading ideas or signals through Gmail/telegram ID: ashishghoshjpg/asisjpg

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