What’s Happening with US Tariffs on EU Imports?

Intermediate | May 27, 2025

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Talking About US-EU tariffs

What Are Tariffs?

Do you follow the news about US-EU tariffs? Sometimes, things can get a little tense between countries. Right now, there’s a lot of talk about potential new taxes, called tariffs, that the United States might put on products coming from the European Union (EU). These tariffs could make imported goods more expensive for people in the US and could also affect businesses in Europe.

The 20% Proposal and Why It Changed

Originally, back in April, there was a proposal for a 20% tariff on many EU goods. Think of a tariff like an extra fee added to the price of something you buy from another country. The idea behind it, according to the US, is often to encourage people to buy products made in their own country instead.

This 20% idea changed a bit. The US introduced a baseline 10% tariff on most EU imports. But the possibility of higher tariffs has remained a big discussion point. The EU and the US have been trying to talk and find an agreement to avoid a major trade disagreement.

Delays and Discussions

Trump’s 50% Tariff Threat

Recently, the situation got a bit more serious when US President Donald Trump mentioned a possible much higher tariff – 50% – starting very soon. This caused some worry in the EU because it could significantly impact their businesses selling goods to the US.

Diplomatic Talks and the July Deadline

However, there was a new development just recently. After talking with the head of the European Commission, Ursula von der Leyen, President Trump agreed to delay the decision on these higher tariffs. The new deadline for talks is July 9, 2025. This delay gives both sides more time to negotiate and hopefully find a solution that works for everyone.

The EU’s Plan for Retaliation

The European Union has been preparing for the possibility of these tariffs. They have lists of US products that could face their own extra taxes if the US goes ahead with the tariffs. This is sometimes called “retaliation” – one side puts taxes on imports, so the other side does the same. The hope is that negotiations will be successful and these extra taxes won’t be needed, avoiding a trade war.

Why It Matters

So, while the threat of higher tariffs hasn’t gone away completely, the delay offers a chance for diplomacy. Businesses and consumers on both sides of the Atlantic are watching closely to see if a deal can be reached before the July 9th deadline. It’s a reminder of how connected the global economy is and how actions in one part of the world can affect many others.

Vocabulary

Tariff (noun): A tax on goods coming into a country.
Example: “The government is considering a new tariff on imported cars.”
Imports (noun): Goods brought into a country from another country.
Example: “Many shops sell imports from around the world.”
European Union (EU) (noun): A group of European countries that work together, especially on trade and economic matters.
Example: “Products made in France can be sold easily in other EU countries.”
Proposed (adjective): Suggested or recommended.
Example: “They discussed the proposed changes to the plan.”
Impact (noun): The effect or influence of something.
Example: “The new policy will have a big impact on small businesses.”
Negotiations (noun): Formal discussions between people or groups who are trying to reach an agreement.
Example: “The trade negotiations are expected to continue next week.”
Deadline (noun): A time or date by which something must be finished.
Example: “The deadline for submitting the report is Friday.”
Countermeasures (noun): Actions taken to prevent something from having a harmful effect.
Example: “The company implemented countermeasures to deal with the problem.”
Retaliation (noun): The act of hurting someone or doing something harmful to them because they have done or said something harmful to you.
Example: “The company is worried about retaliation from their competitors.”
Diplomacy (noun): The activity or skill of managing international relations, typically by a country’s representatives abroad.
Example: “They hope to resolve the issue through diplomacy rather than conflict.”

Discussion Questions (About the Article)

What was the initial proposed tariff rate mentioned in the article?
Why did President Trump recently threaten a much higher tariff rate?
What is the new deadline for the trade talks between the US and the EU?
How is the European Union preparing for the possibility of US tariffs?
What does the article suggest about the importance of negotiations in this situation?

Discussion Questions (About the Topic)

What are some reasons why countries put tariffs on imports?
How might tariffs affect the price of goods in stores?
Do you think trade disagreements between countries are common?
Besides tariffs, what other things can make international trade difficult?
Why is it important for countries to try and resolve trade issues through discussion?

Related Idiom

“Bite the bullet”
Meaning: To face a difficult or unpleasant situation with courage.
Example: Businesses might have to “bite the bullet” and pay higher prices if the tariffs go into effect.

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This article was inspired by: Bloomberg