US makes new offer to EU in tariff dispute

In the trade dispute with the EU, the US submitted a new offer. The European Commission confirmed on Thursday that it had received a relevant US document. It was being reviewed, Commission President Ursula von der Leyen said on Thursday night after an EU summit.

"We are ready for an agreement. At the same time, we are preparing for the possibility that no satisfactory agreement will be reached," Von der Leyen said, adding: "All options remain on the table." Neither the Commission president nor European Council President António Costa would comment on the content of the proposal.

Merz wants quick and simple solution

German Chancellor Friedrich Merz urged for swift action after the consultations in Brussels: "A quick and simple solution now is better than a slow and highly complicated one," he said, referring to the negotiations with the US. The tariffs imposed by US President Donald Trump were endangering German companies.

At the same time, Merz stressed that he was not criticising the current negotiation strategy of the responsible European Commission. "I only suggested and urged that this should not be made too complicated now," he explained.

Trump threatens further tariffs if agreement fails

Merz’s comments came against the backdrop of US President Donald Trump’s intention to impose even more tariffs from July 9 if the EU does not accommodate the US on trade issues. The Republican justified his approach primarily by saying that he wanted to correct alleged trade imbalances.

At the same time, tariff revenues were intended to at least partially offset his expensive campaign promise of large tax cuts. The European Commission, on the other hand, considered the tariffs unjustified and incompatible with the rules of the World Trade Organisation (WTO).

Von der Leyen: EU prepared for countermeasures

In the event that no acceptable agreement with the US could be reached, the authority intended to quickly impose retaliatory tariffs. Von der Leyen stressed that they were prepared to defend European interests if necessary and had discussed a list of "countervailing measures". Merz expressed support for this approach. "If there is no agreement on tariffs, then the European Union is ready and able to take appropriate measures of its own," he said.

Agreement in negotiations between China and the US

In the conflict between China and the US, however, a step towards de-escalation seemed to have been achieved. According to both countries, negotiators were able to agree on an end to certain trade restrictions. As the Ministry of Commerce in Beijing announced, China would examine and approve applications for the export of ‘controlled goods’ that complied with the regulations. In return, the US would lift a number of ‘restrictive measures’ against China, it said.

US President Donald Trump had previously mentioned a signed agreement with China - but left many questions unanswered. US Secretary of Commerce Howard Lutnick subsequently confirmed in an interview with the financial news agency Bloomberg that the deal with China had been signed.

Because of China's export restrictions on rare earths, industry outside the People's Republic recently came under considerable pressure.

Will the WTO be replaced in the long term?

Triggered by the looming trade wars, there was a new idea in the European Union: a replacement for the now largely incapacitated WTO. At the EU summit, Von der Leyen brought up a ‘redesign’ of the organisation.

Merz even spoke of a ‘new kind of trade organisation’ that could gradually replace ‘what we no longer have with the WTO today’. The CDU chairman meant mechanisms for resolving trade disputes. The European Commission could establish such mechanisms for new EU trade agreements, Merz said.

The WTO was founded in 1995 to dismantle global trade barriers. For years, it has suffered from increasing protectionism, outdated rules and the blockade of its appellate body. Reforms have so far failed due to the disagreement of the members.