If Europe had hoped to negotiate a reduction in US customs duties, it has so far been disappointed. The reintroduction of customs surcharges has therefore been confirmed for July 9, with a barrage of retaliatory taxes from the Europeans. What can we expect?
Customs duties set to rise in a week’s time
July 9 marks the end of the tariff truce introduced by Donald Trump: surcharges had been temporarily reduced to 10% since April 9, but will now return to their previous levels. In response, the European Union has long warned that it would reactivate its retaliatory measures against US exports.
The failure of the negotiations will certainly usher in a new period of tension between the United States and Europe. Donald Trump had agreed to a 90-day pause, hoping to force Europe’s hand, but the standoff did not materialize.
European countries have found it difficult to speak with one voice. While German Chancellor Friedrich Mertz called for a quick agreement, even if it meant swallowing a few bitter pills, French President Emmanuel Macron was more hostile to a deal that was unbalanced for Europe.
Yesterday, European Commission President Ursula Von Der Leyen said that “all options” were still on the table. But with each passing day without an agreement, tensions are likely to crystallize again on July 9.
