President Biden to Discuss Israel-Hamas War and Trade Tensions with EU Leaders
Introduction
President Joe Biden is set to meet with European Council President Charles Michel and European Commission chief Ursula von der Leyen to address the ongoing Israel-Hamas war and trade disputes. The discussions come as hopes for resolving these longstanding issues diminish. Trade negotiators are working to prevent the resumption of import tariffs on EU steel and aluminum imposed by former President Donald Trump in 2018.
Israel-Hamas War and Trade Tensions
The discussions between President Biden and EU leaders are expected to focus on the Israel-Hamas war and the potential ground offensive by Israel into Gaza. Von der Leyen has expressed concerns about the conflict’s regional impact and the risk of spillover. Meanwhile, negotiations to address overcapacity in non-market economies like China and promote greener steel remain unresolved. The Biden administration suspended tariffs on EU steel and aluminum imports on the condition that measures to tackle these issues are agreed upon by the end of the month. However, reaching a deal seems unlikely, as the EU insists on complying with World Trade Organization rules before applying metal tariffs to imports from China.
Challenges in the Electric Vehicle Sector
An agreement to mitigate the impact of the U.S. Inflation Reduction Act on the electric vehicle (EV) sector is also proving elusive. The act offers tax breaks to consumers purchasing EVs assembled in North America. Progress has been made on allowing EVs with critical materials sourced from the EU to qualify for partial tax breaks. However, finalizing an agreement before the summit seems unlikely.
Conclusion
The meeting between President Biden and EU leaders holds significant importance as they tackle pressing issues such as the Israel-Hamas war and trade tensions. The outcome of these discussions will have implications for global trade and regional stability. Finding common ground on these complex challenges remains a priority for both sides.
