US and EU trade negotiators meet in latest bid to ease trans-Atlantic trade tensions
Today, EU trade advisors will meet their American counterparts to discuss the EU-US trade dispute. The dispute began when the EU imposed tariffs on US products following President Trump’s tariffs on steel and aluminium imports.
President Trump recently announced a plan to tariff another $200 billion worth of imports, including EU automobile supplies. This could affect global manufacturing chains and raise prices. The International Monetary Fund estimates that if President Trump’s planned tariffs are implemented, world GDP could drop by 0.5% before 2020. Despite this forecast, President Trump propagates the tariffs will lead to a more self-reliant American economy better equipped to withstand any international shocks.
On the other hand, President Trump and EU Commission President Juncker recently announced they plan to work towards removing all tariffs on non-auto products, specifically mentioning their intention to address the steel and aluminium stalemate.
Expect further cooling of the trade dispute between the EU and the US. If the trade advisors are able to provide a plan for removing tariffs, this may signal further trade dispute de-escalation for the US with other countries such as China, Mexico and Canada.
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