Shorouk Express
The EU had been pushing for a preliminary deal that would have locked in a one-way baseline tariff at 10 percent on goods entering the U.S. from Europe. It was also seeking relief for specific sectors, including cars, aircraft and spirits.
Irish Prime Minister Micheál Martin, responding to Trump’s trade threat, gave his “full support” to von der Leyen and her chief trade negotiator, Maroš Šefčovič. He said his clear preference was for “a negotiated solution that avoids escalation.”
“I hope that negotiations will continue in the weeks ahead and that they will be successful,” added Martin. Ireland, Europe’s leading pharmaceuticals exporter to the U.S., is particularly vulnerable to any escalation in trade tensions.
Time is tight
Although time is getting tight, European diplomats said there was still enough time to avert a full-scale trade war.
“The letter might read like a decree, but everyone will notice the date of Aug. 1,” one of the diplomats told POLITICO. “If it truly were a decree, it would enter into force tomorrow. This gives us three weeks for negotiations that were at a very far advanced stage already.”
A first round of retaliatory EU tariffs on €21.5 billion in imports from the U.S. is due to enter into force at 12:01 a.m. on Tuesday. The bloc is also considering further countermeasures covering around €70 billion in U.S. goods.
