[Source/Observer Network, Liu Chenghui] Shortly after the results of the China-US economic and trade talks were announced, US President Donald Trump quickly turned his fire on the European Union. At a White House press conference on May 12 local time, Trump harshly criticized the EU for unfair trade practices, including barriers to imported American cars. He also predicted that the EU would make "significant concessions" on trade issues with the United States because the U.S. "holds all the cards."

According to The Associated Press (AP), Trump mentioned the EU at the press conference, saying that the long-standing imbalance in automobile trade and restrictive policies between the U.S. and the EU have weakened American industry.

"They treat us very unfairly. They sell us 13 million cars, and we hardly sell any to them; they dump agricultural products on us, and we can hardly export anything." Trump also accused the EU of "suing all our companies... Apple, Google, and Meta."

On May 12, Trump answered reporters' questions at the White House. Visual China

However, Trump predicted that the EU would "make significant concessions" because the U.S. "holds all the cards."

Trump also stated that Americans are forced to pay excessively high prices for prescription drugs, and at least part of this responsibility lies with the EU.

He claimed that the EU has been unfairly exerting "brutal" pressure on pharmaceutical companies to lower drug prices in Europe while refusing to reasonably share related costs such as corporate research and development.

Trump vowed that the U.S. is now prepared to "reverse" this situation, stating that "Europe will have to pay more... and America will pay less."

In early April, the Trump administration announced a 20% "reciprocal tariff" on all EU goods. The U.S. also imposed a 25% tariff on all cars and aluminum imported into the U.S. Although Trump later announced a deferral of the "reciprocal tariff" for most countries, the 10% baseline tariff and the aforementioned 25% tariff remain effective until an agreement is reached.

Despite multiple attempts by the EU to negotiate with the Trump administration to cancel tariffs on European goods, no breakthrough has been achieved yet.

Politico, a U.S. political news website, reported that Trump's remarks formed a stark contrast with his mild words toward European Commission President Ursula von der Leyen last week. Last week, he once praised von der Leyen as "very impressive" and said he hoped they could meet soon.

Although Trump has met many European leaders, von der Leyen has yet to confirm her meeting with Trump. Von der Leyen stated last week that she would only meet Trump if there was a "concrete" trade proposal available for negotiation.

The EU proposed a series of potential concessions last week, including loosening digital regulation and working together to curb so-called Chinese "overcapacity." The EU also threatened to impose tariffs on $100 billion worth of U.S. goods if negotiations stalled.

E.U. Trade Commissioner Valdis Dombrovskis said on May 6 that after the U.S. conducted trade investigations on pharmaceuticals, semiconductors, critical minerals, and other products, U.S. tariffs could cover 97% of E.U. exports to the U.S. He emphasized that such tariff policies are unacceptable, and if U.S.-E.U. negotiations fail, the EU will take retaliatory measures.

Trump's hawkish trade advisor, Peter Navarro, condemned the countermeasure as highly provocative.

Earlier, The New York Times reported that a new study by the European Central Bank showed that European consumers have begun avoiding purchasing American products and services as Trump ignited the "tariff war." "New U.S. trade tariffs on European goods have made European consumers cautious about what they put in their shopping carts, and consumers are very willing to actively stay away from American products and services."

Just hours before Trump made the above comments, the China-U.S. economic and trade talks yielded results, far exceeding market expectations.

From May 10 to 11, senior economic and trade talks between China and the U.S. were held in Geneva, Switzerland. Both sides agreed to reduce tariffs within 90 days and cut rates by 115%. This news quickly attracted high attention from the international community and the market. It is widely believed that this is an important step taken by the world's two largest economies in resolving trade disputes.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7503726251304419879/

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