Radio Schuman

Trade negotiations between the EU and the US : where do we stand?

May 5, 2025
Sven Van Kerckhoven, a political economics professor at Brussels University VUB, dives into the complexities of EU-US trade negotiations, exploring the impact of the ongoing tariff pause. He discusses the effects of geopolitical factors like the war in Ukraine and relations with China on trade dynamics. The conversation also highlights challenges posed by the EU's tech regulations and potential shifts in policy. Additionally, listeners learn about the varied personal income tax rates across Europe, shedding light on economic disparities.
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INSIGHT

Purpose of US Tariff Pause

  • The 90-day pause on tariffs by Trump aims to open negotiation channels, except with China, which he views as less cooperative.
  • The pause is a strategic move to pressure partners and portray Trump as a strong dealmaker benefiting the US in trade.
ADVICE

Selective EU Reciprocity Strategy

  • The EU should reciprocate US tariffs selectively, focusing on specific products to maximize impact without widespread retaliation.
  • Targeted measures can pressure the US to return to negotiations without causing unnecessary damage.
INSIGHT

Possible Return to Low Tariffs

  • Trade negotiations may revert to near zero tariffs for most products, similar to prior agreements before recent tensions.
  • The outcome depends heavily on geopolitical developments and how Trump positions his dealmaking image.
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