U.S.-EU trade talks hit roadblock: Tariffs loom large
Negotiators representing U.S. President Donald Trump are pressing the EU to unilaterally reduce tariffs on American goods. If they do not comply, the EU might face "retaliatory" tariffs of 20 percent, reports the British daily "Financial Times."
U.S. Trade Representative Jamieson Greer plans to inform his EU counterpart Maroš Šefčovič on Friday that the explanatory note recently presented by Brussels before talks with the Americans does not meet Washington's expectations, according to "FT," which cited sources familiar with the matter.
The United States is dissatisfied that the EU proposed mutual rather than unilateral tariff reductions, as some other U.S. trading partners have done. Brussels also did not indicate that the digital tax is an issue for negotiation, as Washington demanded.
The EU is pushing for a mutually agreed framework text before talks with the U.S. However, the negotiating positions of the two sides are too far apart, sources emphasized. "FT" reported that since Trump announced a 90-day negotiation period and suspended the additional "retaliatory" tariffs, little progress has been made in talks between the U.S. and the EU.
One of the newspaper's informants expressed pessimism about the likelihood of the parties reaching an agreement to avoid U.S. tariffs on goods imported from Europe.
The meeting between Greer and Šefčovič, scheduled for next month in Paris, will be a test of whether the parties can avoid further escalation of the conflict, assessed the British daily.
In a recent conversation with "FT," Šefčovič, who is leading the negotiations with Washington, emphasized that he would like to reduce the U.S. trade deficit with the EU and proposed that the EU increase its purchases of American gas, weapons, and agricultural products. However, the United States is still pushing for changes to European regulations on food, the digital services tax, VAT, and the removal of tariffs on some American goods.
High tensions between the U.S. and EU. negotiations continue
In March, the U.S. imposed 25 percent tariffs on cars, steel, and aluminum from the EU, while in the following month, 20 percent tariffs were applied to the remaining imports from the Old Continent. Trump later announced a suspension of the increased tariffs until July 8. During the 90-day period, negotiations on the tariffs are to take place, and tariffs will be at a 10 percent level during this time.
In response to the U.S. decision, the European Union halted its plans to impose retaliatory tariffs on some American imports and proposed mutual zero tariffs on all industrial goods, Reuters reminded.
