US and EU not close to deal on tariffs - EU's Dombrovskis - Reuters

US and EU not close to deal on tariffs - EU's Dombrovskis - Reuters

The European Union (EU) and the United States (US) remain far from reaching a deal on tariffs, according to EU Trade Commissioner Valdis Dombrovskis. This news comes amidst a backdrop of increasing trade tensions and a shift in US trade policies under the Trump administration.

Dombrovskis, during a press briefing in Brussels, stated that while the EU is open to negotiations, the US has not yet presented a concrete proposal for a trade agreement. The EU, which has been actively pursuing trade deals with other nations, has expressed frustration with the lack of progress [3].

The EU, under the leadership of Commission President Ursula von der Leyen, has been actively seeking new trade partners to offset the potential economic impact of US tariffs. The EU has recently concluded or relaunched talks with several countries, including India, the Philippines, Malaysia, Thailand, and the United Arab Emirates [3].

The US, on the other hand, has been imposing tariffs on various goods and materials, including steel and aluminum, and has been engaging in trade negotiations with countries such as South Korea and Japan. South Korea and the US have agreed to pursue a comprehensive tariff-liberalization package by July 8, indicating a more transactional approach to trade relations [2].

The aerospace industry has been significantly affected by these tariffs. RTX, a defense contractor and commercial aerospace supplier, expects a $850 million hit this year from tariffs, while GE Aerospace, which makes engines for popular Boeing and Airbus planes, has kept its 2025 earnings outlook in place and seeks to save about $500 million by cutting costs and raising prices [1].

The Boeing Company, a major customer of both RTX and GE Aerospace, is scheduled to report quarterly results before the market opens on Wednesday. Airlines have also announced cuts to U.S. domestic capacity plans this year due to softer demand, but executives have emphasized the uncertainty surrounding future trade policies and the economy.

The ongoing trade negotiations and tariffs have created a challenging environment for global manufacturers and exporters. The uncertainty surrounding trade policies has led to cautious optimism from financial professionals and investors, who are closely monitoring the developments.

References:
[1] https://www.aol.com/rtx-ge-aerospace-expect-more-175339768.html
[2] https://www.kedglobal.com/us/business-politics/newsView/ked202504250001
[3] https://www.politico.eu/article/donald-trump-tariffs-eu-free-trade-deals-ursula-von-der-leyen/