EuroCommerce, the leading voice of European retail and wholesale trade, has issued a call for immediate and coordinated action between the European Union and the United States following the recent temporary suspension of additional U.S. tariffs on European goods.
The organization believes this pause offers a critical opportunity to reset transatlantic trade relations and to mitigate the damaging effects of the ongoing trade conflict on European businesses and consumers.
A Call for Constructive Dialogue
Christel Delberghe, Director General of EuroCommerce, emphasized that this temporary relief from tariffs must be used proactively. “This is not merely a pause—it’s a chance to build a long-term solution,” she stated. Delberghe warned that without swift diplomatic engagement, the negative economic consequences already seen—particularly higher consumer prices—could worsen.
Retailers and wholesalers, who play a vital role in ensuring product availability at accessible prices, have been especially affected. These trade tensions, Delberghe noted, are straining the supply chain, reducing competitiveness, and burdening households already grappling with inflation.
Unity Within the EU is Key
In addition to urging stronger EU-US cooperation, EuroCommerce has stressed the importance of maintaining cohesion within the European Single Market. Delberghe cautioned that fragmented national responses to trade issues would dilute the EU’s negotiating power and create further regulatory inconsistencies, undermining the very principles of the single market.
EuroCommerce is calling for a coordinated, EU-level approach to trade negotiations and regulatory reforms. This includes greater market integration and simplification of rules, both of which are essential to strengthening competitiveness and easing the burden on businesses.
Internal Barriers and External Pressures
Drawing on International Monetary Fund (IMF) data, EuroCommerce pointed out that internal market barriers within the EU are equivalent to a 45% tariff in manufacturing and a staggering 110% in services. These hidden costs, the organization argues, must be addressed with urgency if Europe is to compete globally and remain resilient in the face of external shocks.
One such external risk is the potential influx of Chinese products redirected from the U.S. market due to ongoing trade disputes. EuroCommerce warns this could lead to market saturation and increased pressure on European producers, unless proper monitoring and regulatory enforcement mechanisms are put in place.
Concerns Over EU Budget Reforms
Another focal point of EuroCommerce’s concerns is the proposed reform of the EU’s Multiannual Financial Framework (MFF). Though full details remain forthcoming, there is anxiety among key sectors, particularly agriculture, regarding the possible reduction in funding. EuroCommerce echoes these concerns, warning that any cutbacks could destabilize supply chains and erode support for strategic industries.
Stability and Predictability: A Business Imperative
Highlighting the way trade contracts are often signed months in advance, EuroCommerce insists that businesses require a predictable and stable regulatory environment. Abrupt policy changes or unexpected tariff decisions can derail operational planning and trigger unnecessary price spikes, harming both businesses and end consumers.
With living costs still elevated across Europe, EuroCommerce concludes that governments and EU institutions have a responsibility to shield consumers from further inflationary shocks. This includes resisting protectionist measures and adopting policies that favor open, fair, and efficient trade.
Source: Vinetur