Within the current week is expected to clarify the front of the dictatorial between USA and the EU, with the most likely scenario forecasting lower than 30% but without any exceptions for some sectors of the European export industry.
As German Chancellor Friedrich Mertz said, during the summer of all the case a press conference last Friday (18.7.2025) “We are in the final phase of the US negotiations, which must be completed by the middle of the next (current) week.”
It is recalled that US President Donald Trump has received a “tacit” extension almost a month, as he has stated that any duties decided by the Americans will be implemented from August 1, 2025.
As far as the EU is concerned, Trump’s last threat spoke 30%, ie three times as many as those in effect from April 9, 2025!
Mertz’s statements last Friday are of great importance because they are the most recent EU member country leader, but also the leader of the EU largest and most exporting hiking.
The German Chancellor stressed that “The lower the duties on both sides, the better for both sides. That is exactly the goal. “
At the same time, he made it clear that “It is unrealistic to believe that we will end up with a mutual zero duties agreement.”
“The US government has made a preliminary decision that will have extreme consequences for the US budget, namely the decision to reduce the tax rates in America with Friday’s” One Big Beautiful Bill “, which will lead to significant tax revenue losses. President Trump also repeatedly stresses that he loves duties ”, Mertz noted.
And added by saying that “This means that we should prepare for the possibility that the US government will act in this way, at least as long as the trade deficit insists on their perspective – although this commercial deficit is a trade deficit in the trade of goods, not in service trade.
If the service sector was included, the trade balance between America and Europe would be very different. But the US government does not accept this, so we must prepare for an asymmetric tariff agreement – but again: with the contributors as lower as possible on both sides. “
After all, the German Chancellor pointed out that “Whether it is still possible to create sectoral rules and deal with individual areas differently is an open question. This is supported by the European side, and the American side sees it rather critical. “