Already quarter past twelve in the tariffs dispute
It is debatable to what extent US President Donald Trump is able to exert pressure on the USA's trading partners with the volatility of his announcements and executive orders. At least he seems to have managed to lull the public to sleep with his trade policy cha-cha-cha. At first glance, Trump's latest announcement to extend the deadlines for an agreement until 1 August almost sounds like a generous gesture, as it postpones the go-ahead for potentially dramatically high tariffs. However, such a perception fails to recognise that surcharges are already in place, particularly for cars and steel, which cause immense damage. They not only cost money, but also jobs. And which not only slow down exports, but also investments and thus competitiveness.
Inventories reduced
No one should be surprised why foreign trade, industry and even the financial sector are pushing so hard and why the EU Commission, the EU Parliament and Federal Chancellor Friedrich Merz are in such a hurry to at least conclude a rough and ready framework agreement. As stocks are being reduced, Europe's exporters are already being hit hard by the surcharges already in force. In this respect, it is not five to twelve, but five past twelve. If not a quarter past twelve.
The fact that Trump is taking an even tougher stance towards some Asian countries (which, incidentally, is linked to his hegemonic race with China) should not lead us to believe that the EU will be spared. The tariffs currently in force are a heavy burden on the European economy. The „framework agreement“ that everyone is currently talking about must therefore provide for considerable relief compared to the status quo. Only then can the EU agree to discuss a comprehensive agreement over the coming months.
No further postponement of countermeasures
If such a deal is not reached soon, there is no longer any argument for postponing countermeasures. In fact, the EU would lose credibility if it does not initiate the first stage of countermeasures. Especially as those directly involved in the talks complain that the US side wants to talk about everything and anything at once, and is constantly making new demands and threats to prevent a basis of trust from developing. Perhaps the EU really does need to launch countermeasures in order to finally reach the point of reasonable negotiations with the US.
