Cars and levels in agriculture have emerged as key friction points between it, as the two sides continue negotiations to reach a temporary trade agreement in the coming days, as people who know the matter told Bloomberg.
According to the same sources, the EU is seeking duties that will not exceed 10% in agricultural exports. A compensation mechanism that some automakers had promoted as a way of granting a tariff relief to companies in exchange for investment in the US is not currently under consideration, amid EU concerns that it could transfer production beyond the Atlantic. Block negotiators are focusing on tariffs on car duties, the same sources added.
They also emphasized that the block will also re -introduce the postponement of a series of countermeasures he had adopted in response to the duties imposed earlier by President Donald Trump on steel and aluminum. automatically at midnight on Tuesday.
However, they point out that the negotiations and any possible agreement could be overthrown by Trump, who has not yet publicly commented on the arrangements under discussion. Any agreement will be based on what Trump decides, the information said. The US president has sent letters to about two dozen countries that unilaterally determine the tariff rates.
The European Commission has refused to comment on the course of talks as the negotiations are ongoing.
The framework of the agreement
The US and the EU are discussing an initial agreement that will impose a 10% duty on most EU exports, with limited exceptions for some sectors such as aviation and medical products, as Bloomberg had previously mentioned. The EU also supports the reduction of duties in alcoholic beverages and wines, as well as mitigation through duties of 50% duty duties imposed by Trump on steel and aluminum. The US has proposed a 17% duty to agricultural products.
The agreement will also cover non -tariff barriers, financial security cooperation and strategic markets.
Trump had threatened to impose 50% duties on the EU this month before insisting on a previously reduced 10% ceasefire until the deadline of August 1. It has also imported 25% duties on cars and spare parts, as well as twice as many of them in the metals. The President is working to import duties in other areas, including pharmaceuticals and semiconductors, and recently announced a 50% duty to copper.
Any agreement at this stage would not automatically protect the EU from these sectoral measures, but the block continues to seek privileged treatment in potentially affected industries, the same sources said.
The countermeasures
As the outcome of the talks remains unclear, the EU has continued to prepare countermeasures for rapid growth if the negotiations do not lead to a positive result.
($ 24.5 billion), which could be applied quickly as a response to the metal duties imposed by Trump. They aim at politically sensitive US states and include products such as Louisiana, the homeland of the Speaker of the House of Representatives Mike Johnson, as well as agricultural products, poultry and motorcycles.
The block has also prepared an additional list of tariffs on US products worth 72 billion euros in response to the so -called Tramp duties and duties in the automotive industry. They will target industrial products, including Boeing Co. aircraft, cars manufactured in the US and Burbon. The EU is consulting with Member States to identify strategic areas in which the US is based on block, as well as potential measures that go beyond tariffs, such as export controls and restrictions on procurement contracts.
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