Brussels – The United States is poised to implement a significant increase in tariffs on steel and aluminum imports starting tomorrow, June 4, which could see rates doubled to 50 percent for goods imported from various nations.

This move has triggered growing irritation in Brussels, where officials are beginning to shift from a conciliatory approach to one that includes early threats of retaliation.

The Organisation for Economic Co-operation and Development (OECD) has raised alarms about potential repercussions, projecting a slowdown in global economic growth from 3.3 percent in 2024 to 2.9 percent in 2023. The OECD indicates that global economic prospects are weakening, citing factors such as rising trade barriers, tighter financial conditions, diminished confidence, and increased policy uncertainty.

On the same day as the tariff escalation, a face-to-face meeting is scheduled between European Trade Commissioner Maroš Šefčovič and U.S. Trade Representative Jamieson Greer, taking place in Paris during the OECD ministerial meeting.

These negotiations have faced challenges, as both sides navigate the unpredictable nature of U.S. President Donald Trump's trade policies.

A May 28 federal court ruling declared the reciprocal tariffs announced by Trump in early April as illegitimate; however, this judgment was quickly overturned on appeal.

Analysts have described market reactions to Trump's trade announcements, and subsequent reversals, with the acronym 'TACO Trade,' which stands for 'Trump Always Chickens Out.'

Responding to the escalating tensions, Olof Gill, spokesperson for the European Commission on trade matters, confirmed that technical-level negotiations are still ongoing and characterized them as 'very constructive.' However, he acknowledged that Trump's recent announcement to double tariffs undermines efforts to reach a negotiated resolution to the ongoing trade dispute between the EU and the U.S.

Ursula von der Leyen intervened in recent discussions to extend the tariff suspension window until July 9, following Trump's threats of rapid tariff implementation.

The European Commission has prepared measures for retaliation, with an initial EUR 26 billion response plan to the existing 25 percent tariffs on steel and aluminum from the United States already put on hold until mid-July.

The Commission is also contemplating further countermeasures, with a public consultation completed on a potential EUR 95 billion package should negotiations with the U.S. fail to yield results.

Recent developments revealed that the White House is soliciting various partner countries to present their 'best offers' for trade negotiations by tomorrow, requesting detailed proposals in key sectors, including tariffs and quotas for purchasing American industrial and agricultural products.