German-American Chambers of Commerce Push for US-EU Tariff Reduction Amidst Trade Tensions

The German-American Chambers of Commerce (GACC) are actively advocating for reduced trade barriers between the United States and the European Union to alleviate global supply chain disruptions. European Commission President Ursula von der Leyen is expected to play a crucial role in negotiating potential tariff agreements between the EU and the U.S., aiming to stabilize transatlantic trade relations. Experts emphasize the significance of these negotiations, particularly in light of the substantial economic influence wielded by both the U.S. and the EU.Despite the absence of a dedicated free trade agreement, the U.S. and EU maintain a vital trade and investment partnership. In 2023, total trade in goods and services reached approximately €1.6 trillion. However, trade relations have faced challenges, including the imposition of tariffs on steel and aluminum, leading to retaliatory measures and concerns over potential trade wars.Recently, there have been developments towards de-escalation, with President von der Leyen welcoming the U.S. decision to pause reciprocal tariffs. The EU has also agreed to suspend its countermeasures for 90 days to facilitate negotiations. While aiming for frictionless trade, the EU is also diversifying its trade partnerships and reinforcing its internal market.