US President Donald Trump threatens to introduce 30% of duties on most imported goods from the EU and Mexico from August 1, requiring large concessions from trading partners.
In response, the European Union suspenses the counter -measurement by the beginning of August in order to maintain the chances of reaching an agreement through negotiations.
We always clearly stated that we preferred negotiations. This remains relevant, and we will use the time that we have now, ”said the head of the European Commission Ursula von der Lien.
Nevertheless, the EU has already prepared packages of duties for US goods totaling 93 billion euros, which can be introduced in case of negotiation failure. At the same time, Germany calls for restraint, at the same time, France insists on a sharp answer.
On Sunday, the German Chancellor Friedrich Merza said that he was “really committed” by the search for a trade decision from the United States, since 30% of the duties will be a serious blow to Germany.
If this happens, we will have to postpone a lot of our efforts in the field of economic policy, as this will interfere with everyone and strike a serious blow to the German export industry, – Merz warned.
Meanwhile, French President Macron said that the commission never “confirmed the definition of the trade union to protect European interests”, and that measures may include the so -called forced instruments.
Earlier it was reported that the EU is trying to quickly conclude a temporary trade agreement with the United States in order to avoid 50% of the duties on European export
The European Union and the United States are at the last stage of the framework trading agreement, which will maintain 10% of the tariff for European export to the United States, and not planned 50%, which should enter into force on August 1.
The agreement, which, according to sources, will be short and will not be valid, provides exceptions for a number of strategically important goods, including planes, aviation components, as well as wine and alcoholic beverages. This should provide time to achieve a permanent agreement, which will also affect digital trading, nonstiff barriers and economic security.
The European Commission has already informed the member states about the negotiation course. The representative of the commission refused to comment, but the sources expect that the preliminary agreement will be concluded in the coming days to avoid a sharp increase in duties.
In parallel, the EU requires that Washington soften the current tariffs for the car (25%), as well as steel and aluminum (50%). Negotiations are ongoing, but there is no breakthrough yet. The possibility of a compensation mechanism that will allow automobile companies with the EU to export some products in the United States without duties, but this is concern about the transfer of production in the Atlantic.
Brussels does not exclude the scenario of agreements and prepare the appropriate measures: the EU has already approved tariffs for US goods for 21 billion euros and created an additional list of responsibilities for 95 billion euros.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.