Trump Tariffs: EU Deal on Cars & Aviation
The European Union is willing to accept a commercial agreement with the United States that includes a 10% universal tariff on many of its exports, but wants the USA Bloomberg.
The European Commission is also pressing the US to establish quotas and exemptions that effectively reduce the 25% tariff on cars and car parts, as well as that of 50% on steel and aluminum, according to people familiar with the matter. For Europeans, this pact would still slightly favor the US, but it would be acceptable.
The It has until July 9 to close an agreement with Donald Trump before 50% tariffs on almost all its exports to the US. The US president has imposed tariffs on almost all its commercial partners, arguing that it seeks to repatriate production, finance a fiscal extension and stop foreign use.
Both the EU and the US are to reach an agreement before July 9, date on which Washington plans to apply a 50% tariff to almost all European products, and the EU plans to impose countermeasures. On both sides they hope to reach a provisional agreement, as Trump agreed with China, to continue negotiating. Any pact would include tariffs, non -tariff barriers, key purchases of American products and additional cooperation areas.
Negotiation time
The EU commercial head, Maros Sefcovic, will lead this week a delegation in Washington to boost negotiations. The block considers that a principle agreement remains the best scenarioalthough it has not been clarified how long the provisional provisions would last.
The Commission also wants the current US sector tariffs, such as those applied to cars and metals, as well as the future tariffs, are addressed from the beginning. The EU seeks to reduce non -tariff barriers mainly with strategic purchases of liquefied natural gas and artificial intelligence technologies. He is also open to collaborate with the US in common economic security challenges.
The commission estimates that US tariffs currently affect 380,000 million euros. On Monday, the Commission informed the Member States that he had received an American proposal that addressed tariffs, non -tariff barriers and strategic cooperation.
Four scenarios
The worst scenario would be that Washington does not accept a balanced offer. The block continues to prepare countermeasures in case the result is unsatisfactory. The EU has already approved tariffs on 21,000 million in American products that can be applied rapid.
In addition, Brussels has prepared an additional list to additionally tax US products worth 95,000 million, which affect cars, boeing aircraft, bourbon, cars and other industrial goods. If Trump breaks the negotiations, there are high probabilities that European reprisals are activated.
The objective of Brussels is to achieve a beneficial agreement with the US, although it must be accepted a certain level of asymmetry. This scenario raises a probable alternative scenario of an extension of the negotiation period.