The tariff war reignites across the Atlantic for China Welding Consumables, Inc.! The EU estimates that Trump's tariff policy will affect 549 billion euros of exports to the US.

The latest forecast from the European Union shows that the trade investigation and broader industry tariff investigations by US President Donald Trump against US-EU trade will raise the total amount of EU goods taxed by the US to 5490 billion euros (approximately 6220 billion US dollars). This escalation comes at a time when both sides are trying to negotiate tariff reductions and new cooperation at the trade level, further escalating the conflict between Atlantic China Welding Consumables, Inc. If negotiations with the US fail, the EU is preparing retaliatory tariffs or export restrictions, including re-imposing tariffs on US imports worth about 21 billion euros. Due to the unprecedented tariffs imposed by the Trump administration globally, the EU is working to diversify its trade and investment relationships with other countries/regions and protect its market from the negative impact of cheap goods. Although the Trump administration announced a 90-day extension on the most severe "reciprocal tariffs" shortly after "Liberation Day" due to continued volatility in the US stock, bond, and currency markets, during this period, most countries' benchmark tariffs on goods other than China have been adjusted to 10%. However, according to Bloomberg Economics, the current "effective tariff rate" in the US is close to 23% - the highest level in over a century. This has had a severe impact on US consumer and business confidence. The Trump administration has decided to impose staggering tariffs of up to 145% on China (one of the top three US trading partners), and at least 10% tariffs on most other countries, despite temporary exemptions for certain sectors such as consumer electronics, semiconductors, etc. Many forecasters have warned that this will sharply slow down the global economy in the future, with some even predicting a deep economic recession in the US this year. "The US has indicated that it may announce additional tariffs on imported lumber, pharmaceutical products, semiconductors, critical minerals, and trucks," said EU Trade Commissioner Maro efovi in a speech in Strasbourg, France on Tuesday, emphasizing that this would add approximately 170 billion euros to the affected EU goods on top of the 10% global benchmark tariff, making the scale of EU exports affected by US tariffs account for approximately 97% of its annual exports to the US. "These import taxes are unjustified and economically damaging to both sides of the Atlantic China Welding Consumables, Inc.," efovi told EU lawmakers. "This situation is unacceptable, and we cannot stand idly by." Earlier reports indicated that efovi is negotiating with the Trump administration and is expected to submit a document to the US this week to initiate bilateral trade negotiations. The EU's proposed plan will include: reducing bilateral tariffs and non-tariff barriers, increasing European investment in the US, cooperating on addressing strategic challenges such as unfair competition, and purchasing more US products. EU-US trade balance - EU surplus of 48 billion euros in goods and services trade (2023 data, source: European Commission) If negotiations fail, the EU is also prepared to take retaliatory measures to rebalance US-EU trade relations, efovi stated in his speech. It was previously reported that the EU has begun preparing a list of additional tariffs on US imports and discussing whether to implement export restrictions. The first step may be to reinstate measures to tax approximately 21 billion US dollars of US goods, which were previously approved in response to Trump's steel and aluminum tariffs but are currently suspended after Trump exempted the EU from high equivalent tariffs. Earlier this month, the EU agreed to postpone retaliatory measures against the US-led 25% steel and aluminum tariffs by 90 days. This decision came after Trump temporarily reduced the so-called "reciprocal tariffs" rate on most EU exports from 20% to 10%, with the exemption period also being 90 days. Trump also imposed approximately 25% tariffs on cars and some parts globally, including the EU. In the recent update of the automotive tariff announcement by the Trump administration, nearly 150 categories of critical automotive components face a challenging tariff regime from May 3 onwards - meaning that the 25% tariff on US car imports, which officially came into effect a month later on May 3, had been postponed. However, essential core components and some imported cars that comply with US government trade policies have been exempted from tariffs. efovi also stated that the EU is quickly diversifying its trade and investment relationships with countries around the world to mitigate the impact of tense US trade relations. Another major concern is the influx of cheap goods into the European market due to US tariff policies. efovi said that the European Commission is prepared to use all available tools to protect EU products. "We are monitoring potential risks of cheap trade diversion with a dedicated Import Watch Special Task Force," he said. "Preliminary results of this work are expected to be announced around mid-May."