Trump: 'If EU relocates production, tariff deferral discussion possible'... Strengthening negotiation pressure

President Trump hoping for achievements in negotiations with EU (Source: Politico)

President Donald Trump of the United States raised the level of tariff pressure on the European Union (EU) once again. On the 24th (local time), President Trump stated, “If the EU starts moving production to the United States, we can discuss tariff deferment.”

This is interpreted as reconfirming the existing stance that up to 50% tariffs could be imposed on the EU starting June 1, but also leaving room for negotiation if certain conditions are met. President Trump has expressed dissatisfaction with the lack of progress in tariff negotiations with the EU for over a month, and through this statement, he effectively sent a strong warning message.

The Trump administration has put forth the expansion of manufacturing-centered employment within the United States as a major economic policy, proposing ‘relocation of production’ as a sort of condition to major trading partners. If trade negotiations with the EU continue to remain stalled, the possibility of imposing tariffs cannot be ruled out.

Depending on Europe's reaction and whether further negotiations proceed, it is expected to significantly impact the global trade order and the supply chain strategies of European manufacturers.