Financial Times reported on Friday (16) that the United States and the European Union, made up of 27 member countries, finally started commercial tariff negotiations between countries.
There was exchange of documents outlining discussion areas, encompassing from tariffs to digital trade and investment opportunities, according to FT, who had access to an EU informative note and talked to sources familiar with the subject.
In the note, Sabine Weyand, the European Commission’s main commercial authority, said the European Union needs to act calmly and not succumb to the US desire for “quick victories”, and warns of the permanence of some American tariffs especially in sectors that the US wants to repay, such as steel and the auto industry.
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The EU has so far not been able to enter into any rates on tariffs with the US, as did, Japan, South Korea, Vietnam and even China. However, the EU trade ministers have reaffirmed the preference for the quality of a potential deal with the US, not the speed of establishing it due to the size of the tariffs.
According to the FT, Trump’s commercial representative, Jamieson Greer, warned European diplomats about US frustration with the lack of proposals by the EU and warned that previously suspended tariffs could be replemented if the block did not act.
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EU’s “reciprocal” fare was reduced by half July 8 to allow negotiations, but Trump kept the rates on commodities such as steel, aluminum and automobiles, and threatened to impose new taxes on pharmaceutical and semiconductor products.
EU Commerce Commissioner Marošefčovič expressed interest in meeting Jamieson Greer and highlighted the EU’s intention to reduce commercial deficit with the US, increasing gas purchases and US agricultural products. However, for Americans, the high European Value Value Tax (VAT) and the block’s digital regulations make negotiations difficult.
The EU suspended retaliatory rates of 21 billion euros during negotiations, but proposed a new euro package of 95 billion, including rates on products such as Boeing aircraft and cars. In addition, although he said that the EU would not give in to USA requirements about VAT and digital regulations, šEFčOVIč said the block is willing to reduce China’s dependence on raw materials and essential medicines.
