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U.S. President Donald Trump appears on, at the day he indicators government orders within the Oval Office on the White House in Washington, D.C., U.S., April 23, 2025.
Leah Millis | Reuters
European officers say they are positive a industry deal can also be reached with U.S. President Donald Trump, caution of important financial hurt to each Europe and the U.S. if an settlement is not agreed and full-scale price lists are offered.
“I do believe an agreement can be reached, but at the same time, I do know we have lots of work that we have to do in order to get to that point,” Pascal Donohoe, president of the Eurogroup and finance minister of Ireland, advised CNBC on Wednesday.
“If we use the time ahead wisely, we can at least create a framework in which we can avoid measures being taken on both sides of the Atlantic that could harm ourselves, harm Europe and harm America,” he stated at the sidelines of the International Monetary Fund and World Bank spring conferences in Washington.
The European Union and U.S. are engaged in nerve-racking negotiations to achieve a industry deal in order that U.S. price lists on EU items introduced by way of Trump, and EU countermeasures, can also be have shyed away from.
Trump first of all imposed a 20% “reciprocal” tariff on all items coming from the EU however paused the measures for 90 days for negotiations, reducing the obligation to 10% till that point. A 25% tariff on international vehicles and metal and aluminum imports stays in position.
The EU paused its retaliatory responsibility concentrated on 21 billion euros ($24.1 billion) value of U.S. items “to allow time and space for EU-U.S. negotiations,” the European Commission stated.
Talks have now not but yielded any tangible compromises or effects, European officers say, and the backdrop to discussions most probably soured additional on Wednesday after the EU fined U.S. tech behemoths Apple and Meta masses of hundreds of thousands of euros every for breaching the bloc’s virtual festival rules.
The EU insists that its industry in items and products and services with the U.S. is relatively balanced. Data from the European Commission, the chief arm of the EU, stated the bloc had a industry surplus of 155.8 billion euros ($176.7 billion) with the U.S. for items in 2023, however ran a 104 billion euro deficit on products and services. Overall, EU-U.S. industry in items and products and services in 2023 used to be value 1.6 trillion euros, in line with the EU.
Machinery and cars make up the biggest bite of EU exports to the U.S. by way of product team, adopted by way of chemical substances, different manufactured items and medicinal and pharmaceutical merchandise.
Spain’s Finance Minister Carlos Cuerpo advised CNBC that any failure to achieve a deal can be damaging for each Europe and the U.S., with greater than 4 billion euros’ ($5.1 billion) value of industry in items and products and services an afternoon at stake.
“We need to engage in an open and frank conversation amongst the two sides of the Atlantic, because there’s a lot to lose if we do not get into a fair and balanced agreement,” Cuerpo advised CNBC’s Carolin Roth in Washington.
“There is this specific figure, of 4.5 billion euros on a daily basis across the Atlantic in terms of trade in goods and services — that’s a treasure that we need to protect,” he famous.
“It is [important] how we face these negotiations from the EU side, with an extended hand, to reach an agreement. But it has to be a fair agreement. Let’s not forget that under the current situation, most of the tariffs that were imposed by the U.S. administration are already in place and affecting our companies.”
Eelco Heinen, finance minister of the Netherlands, slammed price lists as a taxation on items this is “so bad for consumers” and would reason companies to pause funding.
Major headwinds
On Tuesday, the IMF had warned that industry price lists introduced by way of President Donald Trump pose main headwinds for the U.S. and international economic system in 2025.
In its April 2025 World Economic Outlook., the IMF forecast a U.S. enlargement outlook of 1.8% in 2025, down 0.9 proportion issues from its January forecast. The fund additionally reduce its international enlargement forecast to 2.8% this yr, down 0.5 proportion issues from its earlier estimate.
The fund predicted a slight decline within the euro zone, forecasting that euro house GDP will hit 0.8% in 2025, ahead of choosing up modestly to 1.2% in 2026.
It singled out Spain as a vivid spot within the area, pointing out its enlargement momentum “contrasts with the sluggish dynamics elsewhere,” with the Mediterranean country anticipated to amplify its economic system by way of 2.5% this yr following an upward revision of 0.2 proportion issues from the forecast made in January.
“This reflects a large carryover from better-than-expected outturns in 2024 and reconstruction activity following floods,” the IMF stated.
These had been the fund’s “reference forecasts” for international financial enlargement and inflation, which is according to knowledge to be had as of April 4 — together with the U.S.’ “reciprocal” price lists however except next trends just like the 90-day pause on upper charges.
— CNBC’s Hakyung Kim contributed reporting to this tale
