The EU aims to avoid tariffs with a Trump deal, as tensions with China rise and new U.S. tariffs on pharmaceuticals loom
Tensions rise between Brussels and Beijing over trade accusations
U.S. tariffs? Still a work in progress. These are tense days on both sides of the Atlantic.
“Since February, the United States has imposed tariffs on 70% of the EU’s total trade with the U.S. The scale and scope of these measures are unprecedented. Our stance has been clear. We will stand firm. But we prefer a negotiated solution,” said European Commission President Ursula von der Leyen, emphasizing the EU’s commitment to diplomacy.
According to von der Leyen, recent conversations with President Trump were “productive… we are seeking a clear framework” to “continue building… and defend our interests.”
Trump’s letter to the EU
Meanwhile, President Trump announced that a formal letter will be sent to the European Union within two days. The letter will be dated August 1 – the day the tariffs are set to take effect.
During a Cabinet meeting, however, Trump noted that in recent trade talks, “Europe has treated America well.” Still, the Financial Times reports that the eventual EU-U.S. agreement may result in higher tariffs than those set with the United Kingdom.
In response, Brussels is pushing for a temporary framework agreement, proposing mutual tariffs capped at 10%.
Sparks fly between Brussels and Beijing
China has fired back at the EU after von der Leyen’s sharp remarks before the European Parliament, which signaled growing political tension ahead of her upcoming visit to China.
“The EU must change its mindset toward China,” said Mao Ning, spokesperson for the Chinese Foreign Ministry. “What needs to be rebalanced is not the economic and trade relationship, but the EU’s way of thinking.”
In short, the global ripple effects of Trump’s tariff strategy are being felt on every front.
Pharmaceuticals may be next
President Trump has also threatened to impose pharmaceutical tariffs “as high as 200%,”according to CNBC.
Speaking at a Cabinet meeting, Trump hinted the measures would not take effect immediately, suggesting a one-year to eighteen-month adjustment period.
Commerce Secretary Howard Lutnick added that full details on the drug tariffs will be announced by the end of the month.
