The US is swinging the tariff stick, von der Leyen: the EU is forced to seek trade diversification.

European Commission President von der Leyen said on September 18th local time that the European Union must seek trade agreements with countries like India to reduce its dependence on the United States. The increase in import tariffs by the United States is forcing the European Union to seek trade diversification. Von der Leyen stated that the EU hopes to reach an agreement with India within this year, and also mentioned that negotiations are ongoing with countries such as South Africa, Malaysia, and the United Arab Emirates. On August 21st local time, the United States and the European Union issued a joint statement announcing that they had reached an agreement on the framework of a trade deal. The United States reiterated in the statement the 15% tariff ceiling on most EU goods, including automobiles, pharmaceuticals, semiconductor chips, and timber. The EU pledged to eliminate tariffs on US industrial goods and provide preferential market access for US seafood and agricultural products. The EU also plans to purchase $750 billion worth of US liquefied natural gas, oil, and nuclear products by 2028, as well as $40 billion worth of US artificial intelligence chips. Additionally, they plan to significantly increase their purchases of US military and defense equipment. EU companies will also add $600 billion in investments in strategic industries in the United States. Kasten Brzeski, Director of Macro Research at ING Group, pointed out that there are many potential points of friction in the agreement between the EU and the US, which could lead to escalating disputes in the future. Many aspects of monitoring and implementation are still unclear. Furthermore, it is worth noting that this agreement highlights the deepening dependence of the EU on the US, and it may be more accurate to describe it as a "damage control document" for the EU.