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Donald Trump’s trade negotiators have pushed the EU to unilaterally cut back on U.S. goods, and say without concessions the bloc will not make any progress in consultations to avoid an additional 20% “mutual” obligation.
US trade representative Jamieson Greer is preparing to tell his EU counterpart Malossyv Chobichovich today that, according to those who explained to his ideas, the recent “explanations” shared by Brussels have not met our expectations.
The US is unhappy that the EU has offered only mutual tariff cuts, rather than pledging to lower its duties, as some other trading partners have proposed to Washington. Nor could it suggest that the proposed digital tax was the point of negotiation, as requested by the US.
The EU is promoting texts in a jointly agreed framework for discussion, but the two remain far apart, according to those familiar with the discussion.
Greer and šefčovič are scheduled to meet in Paris next month. This is expected to be an important test of whether both parties can avoid escalating trade disputes. The US has decided to adopt measures to reduce the trade deficit of 192 billion euros in 2024.
The EU-US has begun exchanging negotiation documents, but since Trump announced the 90-day negotiation period, they have made little progress on material. The third official, who was described for the interaction, said he was not optimistic about reaching a transaction that would avoid collection of European imports.
“Exchanging letters is not a real progress,” they said. “We haven’t gone anywhere yet.”
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The UK has agreed to a contract to maintain Trump’s 10% “mutual” tariff rate, but secured a 10% collection on 100,000 vehicles with tariff-free quotas for steel exports. It also needed to increase US ethanol and beef imports.
The US imposed a 20% “mutual” rate on most EU products in April, but halved it until July 8th to allow time for consultations. It holds 25% levels on steel, aluminum and car parts, and promises similar actions on pharmaceuticals, semiconductors and other products.
Some EU diplomats believe the US will maintain 10% baseline for any transaction. Many EU trade ministers say it will cause retaliation.
The US is looking at existing EU offers. This removes all duties on industrial products and some agricultural products if Washington is doing the same thing.
The US has sent standard terms of transactions to the EU. This includes making US companies easier to invest in the EU, reducing regulations and accepting US food and product standards. They also hope that the national digital tax will be abolished.
According to someone who was explained about the EU’s response, Sabine Weyand, the committee’s chief trade officer, told the ambassador on Sunday, “I hope to counter the unsolved US demands.”
It offers mutual recognition of standards, smoothing procedures for food and animal trade, and discussions on how to ensure imports that are compliant with international rights of labor and environmental protection standards.
She said every effort should be made to avoid them while the committee considers further retaliatory measures. The Bullock has suspended tariffs on US goods of 23 billion euros during consultations and serves as the consulting industry and government on an additional 95 billion euro list, including Boeing Aircraft and Bourbon Whiskey.
“We are pleased to announce that EU trade spokesman Olof Gill said: “The EU’s priorities are to seek fair and balanced transactions with the US.
“Both sides need to work to resolve the current tariff situation and strategically coordinate in key areas of mutual interest.”
