It temporarily avoided the 50% imposition of the US president to impose, but it remains unclear how the EU will be able to combine its pursuit of a mutually beneficial agreement with the harsh concessions demanded by Washington.
Trump withdrew from his decision to impose duties from June 1, following a telephone conversation with the President of the European Commission. Instead, a new deadline was given until July 9th to have time for negotiations between the 27 EU countries.
No tangible results
The European Commission, responsible for EU trade policy, announced that the two leaders agreed to accelerate. However, there has been no indication of progress in terms of the solution to commercial conflict.
The EU is seeking an agreement involving the mutually abolition of duties in industrial products, increasing soy, weapons and liquefied natural gas imports from the Russian gas by the end of 2027.
According to a European official, the EU is even considering increasing the imports of beef without hormones, as Britain recently did in an agreement with the US.
EU proposal
The Commission announced on Monday that it will vigorously support its proposal for “zero duties” on either side, in an upcoming telephone communication of Commissioner Maros Sefcovic with US Secretary of Commerce Howard Latnik.
“We believe that this is an extremely attractive starting point for a good negotiation that can benefit both sides of the Atlantic,” a committee spokesman said.
The EU also seeks cooperation on issues such as over -supply of steel – both sides attribute to China – but also to digital technologies such as artificial intelligence.
The obsession with the deficit
The US appears determined to reduce their trade deficit in goods with the EU, which was almost 200 billion euros last year, despite keeping surplus in services.
Washington has sent a list of claims to Brussels, demanding the removal of non -tariff barriers, such as VAT, European food safety standards and national digital service taxes.
Requirements above EU boundaries
A source of the industry with knowledge of the negotiations said that Trump, but the demands of his government go far beyond the limits of European negotiating capacity.
For example, taxes are the responsibility of EU member states, so the Commission cannot negotiate or abolish them.
Berd Lange, chairman of the European Parliament’s Commerce Committee, leading a delegation of MEPs in Washington, stressed that in many cases the US is seeing obstacles … where they do not exist.
He emphasized that the EU may consider specific regulations for exaggeration, but in no way will it adopt US standards as a whole, as Washington seems to seek.
US is pushing to repatriate production
The Trump government is also calling for the return of production to the US, especially in areas such as steel, the automotive industry, mobile phones and semiconductors.
Ireland Minister Martin Heidon said Monday that the EU is right to seek a balanced agreement, adding that Trump’s dissatisfaction because the EU did not “retreat unconditionally” is in fact … complimentary.
“We are one of the most important US trade partners. We should not just agree on what the White House is asking for. We need to negotiate and explain the importance of mutual benefit to trade, “he said.
