US steps up tariff pressure: how does the European Union build a defense strategy in the face of escalation

The European Union and the United States are approaching a new round of trade conflict. Starting August 1, President Donald Trump's administration intends to impose 30 percent tariffs on European goods, increasing pressure on Brussels to conclude a bilateral agreement. The EU, in turn, has stepped up the negotiation process and is simultaneously preparing a package of economic and legal responses.

White House Press Secretary Caroline Levitt said that the European Union remains interested in negotiations and is looking for ways to reduce both tariff and non-tariff barriers, which have repeatedly been the subject of complaints from the United States. According to Levitt, the US administration does not plan to postpone the deadline-August 1-despite the complexity of negotiations.

President Trump's current tactics, often accompanied by harsh statements and promises, have previously caused a resonance in the international arena. His critics even gave him the nickname TACO-Trump Always Chickens Out, pointing out his tendency to back away from the announced measures. However, this time the White House aims to implement the declared duties without delay.

Michal Baranowski, Poland's Deputy Minister of Economic Development, described the EU's strategy as a four-step one. First, the priority remains for a conscientious and open dialogue with the American side. The second step is to prepare a package of countermeasures, including steel and aluminum, as well as mirror tariffs worth up to 72 billion euros. The third is coordination with other countries that are also affected by the US tariff policy. And, finally, the fourth is the structural strengthening of the competitiveness of the European economy.

Baranovsky stressed that the EU and the US are interdependent economic partners, and each side has equal risks and benefits from the current trade relations. Against this background, European Commission Vice-President Maros Sefcovic paid a visit to Washington, where possible scenarios for de-escalating tensions were discussed.

According to the European Union, it is trade and investment relations between the EU and the United States that remain the largest in the world. They account for about 30% of global trade in goods and services and 43% of global GDP. In 2023, the volume of bilateral trade was 1.68 trillion euros, which is equivalent to more than 4.6 billion euros per day. At the same time, the trade balance is steadily developing in favor of Europe, which causes dissatisfaction on the part of the American leader.

Against the background of trade pressure, the EU is considering the possibility of mutual reduction of duties in the automotive industry. According to insider information, Brussels is ready to cancel 10% duties on car imports from the United States if Washington reduces its own tariffs below 20%.

Although officials of the European Commission have not yet commented on the initiative, the discussion is taking place against the background of the 25% duties imposed earlier by the United States on imported cars and auto parts. These measures have had a particularly painful impact on European car manufacturers. For example, Volvo Cars has already reported a decline in operating profit for the second quarter, calling the market situation extremely difficult.

As a participant in global supply chains and a supporter of the multilateral trading system, Uzbekistan is forced to consider the potential consequences for its own export destinations, especially in the areas of high-tech cooperation, mechanical engineering and textiles. Strengthening our position within the WTO and developing agreements with the EU and the United States remain critical to minimizing the risks that arise in the context of protectionist policies of global players.