EU Plans €50 Billion Increase in US Imports to Mitigate Trade Tensions

The European Union is proposing to increase imports of American goods by €50 billion in an effort to ease trade tensions and address the U.S.-EU trade deficit. EU Trade Commissioner Maros Sefcovic stated that the bloc is making progress in negotiations with the U.S., but cautioned that reaching a mutually acceptable agreement will be challenging. The EU's plan includes increased purchases of liquefied natural gas (LNG) and agricultural products like soybeans, aiming to resolve the deficit without accepting a baseline 10% U.S. tariff on European imports, which the EU finds unacceptable. Recent U.S. tariffs on EU cars, steel, and aluminum were halved until July 8 to allow for negotiation, and the EU has suspended retaliatory tariffs in response. Additionally, the EU has proposed eliminating duties on all industrial goods and is open to collaborating with the U.S. to address the impact of China's export surge. The outcome of these talks will require approval from all EU member states and the European Parliament.