US-EU Trade Talks Resume as China Relations Deteriorate

EU Makes Fresh Trade Offer

The European Union presented a new trade proposal to the Trump administration, attempting to restart negotiations. The package includes gradual tariff reductions on non-sensitive products and enhanced cooperation in energy, artificial intelligence, and digital infrastructure. As leverage, the EU has prepared $108 billion in retaliatory tariffs if discussions collapse.

To strengthen the proposal, EU officials are willing to extend a tariff-free arrangement on US lobster imports beyond its July expiration date. This 2020 agreement significantly boosted American seafood exports to Europe.

US-China Trade Tensions Escalate

Despite a recent 90-day tariff pause, US-China trade relations are deteriorating rapidly. China's Commerce Ministry threatened legal action against any entity helping the US discourage global use of Chinese semiconductors. This followed a US Commerce Department warning about using Huawei chips worldwide, though the reference was later removed.

The trade conflict has already impacted major companies. Chinese shipments of Apple iPhones to the US dropped to their lowest levels since 2011 in April.

Corporate Impact

Business leaders are expressing growing concerns about economic consequences. JPMorgan CEO Jamie Dimon warned that stagflation risks are mounting due to geopolitical tensions and fiscal pressures. Companies are beginning to pass costs to consumers, with Nike announcing price increases of up to $10 on adult products and Walmart previewing similar hikes, drawing criticism from President Trump.