Analysts believe that there are fundamental differences in the trade negotiation approaches between the US and the EU. Trump is eager to quickly announce agreements, while EU leaders adopt a more cautious and procedural negotiation style. EU officials have been trying to find a middle ground in dealing with the US, neither as tough as China nor as proactive as the UK. The Trump administration has suddenly increased pressure on the EU, stating that the US has made ‘no progress’ in negotiations with the EU.
According to CCTV News, on Friday, May 23rd, local time, US President Trump indicated on social media that he suggests imposing a 50% tariff on the EU starting from June 1st. Following the announcement of Trump’s declaration, the likelihood of the US falling into a recession by 2025 rose to 43%. In fact, Trump’s dissatisfaction with Europe has a long history. Media reports suggest that Trump’s economic team has been privately complaining to European officials that the disagreements among EU member states on trade priorities have slowed down the negotiation process. They believe Europe is too cautious in negotiations and unwilling to propose concrete solutions to issues of concern to the US, such as streaming service fees, value-added tax, automotive regulations, and antitrust fines imposed on US companies.Analysts consider that there are fundamental differences in the trade negotiation approaches between the US and the EU. Trump is eager to quickly announce agreements, while EU leaders adopt a more cautious and procedural negotiation style. EU officials have been trying to find a middle ground in dealing with the US, neither as tough as China nor as proactive as the UK. The White House’s extreme pressure: patience exhausted, heavy blow. On Friday evening, Beijing time, the tense relationship between the US and the EU finally erupted. The US believes that Europe is too cautious in negotiations and unwilling to propose concrete concessions on core issues of concern to the US. That afternoon in the Oval Office, Trump stated that he ‘does not seek an agreement with the EU,’ implying that he will truly execute the threat. Trump has expressed anger towards Europe for many years. As early as his first term, he has repeatedly criticized NATO member states for insufficient defense spending, both publicly and privately, and referred to the EU’s antitrust fines as ‘taxes’ imposed on US companies. In February of this year, he even bluntly stated that the EU was ‘established to take advantage of the US.’ US Treasury Secretary Scott Bessent, in an interview with Fox News, expressed hope that the 50% tariff threat would ‘ignite a fire’ under the EU, prompting them to take negotiations seriously. Just a few hours after Trump’s threat, EU Trade Chief Maroš Šefčovič immediately called US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick.
Šefčovič stated after a call that the European Union is fully engaged in trade negotiations with the United States, but is prepared to defend its interests. He emphasized that the US-EU trade relationship must be guided by mutual respect, not threats. Analysis indicates that EU officials have sought a middle ground in responding to the US, neither as hardline as China nor as proactive as the UK. The EU’s ‘laissez-faire’ approach to negotiations, in contrast to Trump’s aggressive strategy, involves a more stable and procedural negotiation style, including frequent consultations with the 27 member states. This consensus-driven model is seen by the Trump administration as the main culprit for delaying negotiations. Bessent expressed concerns about the slow progress of trade negotiations at the finance ministers’ meeting held in Canada last week. Despite the US’s relentless pressure, the EU remains firm on certain issues. Officials stated that they do not intend to change the EU’s value-added tax system or health and digital regulations, which the Trump administration views as trade barriers. The stock market has reacted to the new trade tensions, with a decline on Friday. An EU diplomat said it is difficult to judge whether Trump really intends to carry out tariff threats from his social media posts: ‘You cannot formulate policy based on a Truth Social post. ‘ Previously, the EU had approved tariffs on US imports worth 21 billion euros, but these were suspended after the US suspended some tariffs for 90 days. If negotiations with the US break down, the EU has also proposed tariffs on a second batch of goods worth up to 95 billion euros. Risk warning and disclaimer: The market is risky and investment should be made cautiously. This article does not constitute personal investment advice and does not take into account individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment based on this carries the responsibility of the investor.
