Group 1 - The EU is preparing to respond to potential tariffs imposed by the US, with a meeting scheduled to discuss countermeasures against President Trump's "no deal" scenario [1][4] - The US is pushing for a universal tariff on EU goods exceeding 10%, with only a few exemptions, including aircraft and certain medical devices [1][3] - The EU has already approved a retaliatory tariff plan targeting $210 billion worth of US goods, focusing on politically sensitive products [4] Group 2 - The EU is considering the implementation of the "Anti-Coercion Instrument" (ACI) if negotiations fail, which would grant broad retaliatory powers to EU officials [5][6] - The ACI could allow the EU to impose new taxes on US tech giants, restrict US investments in Europe, and limit US companies' access to EU government contracts [6] - The EU's response strategy includes potential tariffs on $72 billion worth of US goods, targeting products like Boeing aircraft and American-made cars [4]

Core Viewpoint - The EU is preparing significant countermeasures against the US, including tariffs on over $100 billion worth of American goods, as trade negotiations intensify and the deadline approaches [1][3]. Group 1: Negotiation Dynamics - The EU believes that trade negotiations with the US may extend beyond the July 9 deadline, with only a principle agreement likely to be reached by then [1][2]. - EU officials have engaged in frequent discussions with US counterparts, focusing on key sectors such as steel, aluminum, automotive, pharmaceuticals, semiconductors, and civil aviation [2]. - Despite a seemingly positive negotiation atmosphere, the EU perceives the US demands as unilateral and potentially skewed in favor of Washington [2]. Group 2: Countermeasures Prepared by the EU - The EU has prepared a two-tiered response plan, with the first tier targeting $210 billion worth of US goods, including politically sensitive products like soybeans and poultry [4]. - The second tier is more aggressive, aimed at $950 billion worth of US products, specifically targeting Boeing aircraft, American-made cars, and bourbon whiskey [4]. - The EU estimates that current US tariffs affect approximately €380 billion ($434 billion) of EU exports to the US, representing about 70% of total EU exports to the US [3]. Group 3: EU's Stance on Tariffs - The EU Commission has expressed readiness to defend its interests and protect its workers, consumers, and industries, while also indicating a preference for reducing tariffs rather than increasing them [6].

Group 1 - The EU Trade Commissioner Maros Sefcovic stated that despite the new tariffs imposed by the US on steel and aluminum products, trade negotiations between the EU and the US are progressing in the "right direction" [1] - The US government raised tariffs on steel and aluminum products from 25% to 50%, citing national security as the reason, which has intensified trade barriers [1] - The EU has approved tariffs on €21 billion worth of US goods as a countermeasure to Trump's metal tariffs, targeting politically sensitive agricultural products and other items [2] Group 2 - The EU is preparing to impose additional tariffs on €95 billion worth of US goods in response to Trump's "reciprocal" tariffs and automotive tariffs, which will include products like Boeing aircraft and American-made cars [2] - The OECD warned that the trade tensions initiated by Trump have significantly worsened the global economic outlook, particularly affecting the US [3]

Core Viewpoint - The trade tensions between the US and EU are showing signs of easing, with President Trump shifting from a 50% tariff threat to a more conciliatory stance, leading to a significant rise in US stock markets [1][3]. Group 1: Trade Negotiations - German Finance Minister Lars Klingbeil emphasized the need for a quick resolution to the trade issues and expressed cautious optimism about reaching an agreement, highlighting the importance of a united EU response to US tariff threats [2]. - The trade relationship thawed dramatically within five days, with Trump delaying the implementation of the proposed tariffs from June 1 to July 9 after a positive conversation with EU Commission President Ursula von der Leyen [3]. - The EU is adjusting its trade strategy to focus on key sectors such as metals, automobiles, pharmaceuticals, semiconductors, and civil aircraft, which are currently facing US tariff threats [3]. Group 2: Economic Context - Despite the apparent easing of tensions, the outlook for negotiations remains uncertain, as the US-EU trade deficit has doubled this year, driven by companies stockpiling goods ahead of potential tariffs [4]. - The EU's proposed solutions to reduce tariffs on various goods were rejected by the US, leading to further threats of increased tariffs from Trump [4]. Group 3: EU Preparedness - The EU has prepared retaliatory measures, including approved tariffs on US goods worth €210 billion (approximately $238 billion), targeting politically sensitive states [5]. - Additionally, the EU is preparing an extra tariff list covering €950 billion worth of US products, including Boeing aircraft, US-made cars, and bourbon whiskey [5]. Group 4: Long-term Outlook - Many EU officials believe that some of Trump's tariffs may persist in the long term, and the likelihood of reaching an ideal agreement remains low, particularly regarding US demands that could undermine EU regulatory and tax autonomy [6]. - The core logic of Trump's trade strategy—threats, concessions, and renewed threats—remains unchanged, with the resolution of this transatlantic trade crisis expected by July 9 [7].

Core Points - The article discusses the recent developments in US-EU trade negotiations, highlighting the postponement of a 50% tariff on EU goods by President Trump, which has led to renewed talks between the two parties [1][2] - The EU is committed to accelerating trade negotiations to avoid a transatlantic trade war, with both sides expressing a desire to maintain close communication [1][2] - Despite the extension of the negotiation deadline, significant differences remain between the US and EU, complicating the path to a mutually agreeable solution [3] Trade Negotiations - The EU has agreed to expedite trade talks following Trump's decision to delay the imposition of tariffs from June 1 to July 9 [2] - EU Trade Commissioner Maros Sefcovic emphasized the importance of constructive dialogue and maintaining close contact with US officials [1][2] - The EU's proposal to the US, which included joint tariff reductions and increased market access for US agricultural products, was rejected [3] Market Reaction - The threat of a 50% tariff was projected to impact $321 billion worth of US-EU trade, potentially reducing US GDP by nearly 0.6% and increasing prices by over 0.3% [4] - Following the news of the extended negotiation period, investor sentiment improved, leading to a rise in US stock futures and European markets [4][5] EU's Preparedness - The EU has prepared a countermeasure list targeting $239 billion worth of US goods in response to US tariffs, with a focus on politically sensitive products [12] - Additional tariffs on $950 billion worth of US products are also being considered, including items like Boeing aircraft and American-made cars [12] - German Economic Minister Katherina Reiche called for calm and emphasized the need to find common ground within the next six weeks [12]