Sopuruchi Onwuka

The 27-member European Union are taking calculated steps towards response to trade issues with President Donald Trump of the United States who is pressing for enhanced local content of products sold in the highly empowered American market.

Trump who returned to office on the promise of making America great again is pushing visible measures to pool global investments to home economy and improve the US’ balance of payment in the global marketplace.

The US president had threatened to impose some 50% tariff on all goods sent to the United States from the EU and ministers from the bloc are appealing for refined negotiation.

EU Trade Commissioner, Maros Sefcovic said “the EU’s fully engaged, committed to securing a deal that works for both.” He had been telephone conversation over the heated tariff negotiations with the US Trade Representative, Jamieson Greer, and Commerce Secretary, Howard Lutnick.

“EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.”

In a post on the Truth Social platform, Trump expressed impatience with the European economic bloc saying: “Our discussions with them (the EU) are going nowhere.” And in calling for foreign direct investments from Europe, he added that there would be no tariffs for products built or manufactured in the US.

“I’m not looking for a deal – we’ve set the deal,” he told local American press, adding that a big investment in the US by a European company might make him open to a delay.

Trump’s complaints about Europe have focused on its uneven trade relationship, as the EU sells more goods to the US than it buys from America.

US government figures show that the EU is one of the Washington’s largest trading partners, sending more than $600 billion in goods last year and buying only $370 billion worth.

In response to Trump’s threats, European governments have warned that higher tariffs would be damaging to both sides.

“We do not need to go down this road. Negotiations are the best and only sustainable way forward,” Ireland’s Taoiseach (Prime Minister) Micheál Martin said.

“We are maintaining the same line: de-escalation, but we are ready to respond,” said French Foreign Minister Laurent Saint-Martin.

German Economy Minister Katherina Reiche said that “we must do everything to ensure that the European Commission reaches a negotiated solution with the United States”.

Dutch Prime Minister Dick Schoof told reporters that he backed the EU’s strategy in trade talks and “we have seen before that tariffs can go up and down in talks with the US”.

Trump had last month announced a 20% tariff on most EU goods but had halved it to 10% until 8 July to allow time for more negotiations.

Trump also warned Apple that he would impose a 25% import tax “at least” on iPhones not manufactured in America, later widening the threat to any smartphone. He reiterated his demand for foreign direct investments by pushing manufacturers to produce devices in the United States.

In his remark at the weekend while signing several key executive orders, Trump said, if the plants are based in the US, there would be no tariffs. He also warned American companies including Apple which produce goods from cheap labour environments that their imported products would be hit by tariffs.

He assured Americans that prices of locally produced goods including smart phones and other devices would not jump when plants relocate to the US.  

In a social media post on his Truth Social, US President Donald Trump wrote, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,”

“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter,” he further added in the post.