The EU has offered the United States a trade agreement of 50 billion euros in response to the 10% prices awaiting Trump on EU products. The commercial offer aims to increase imports of American goods and facilitate the transatlantic trade deficit.
Trump's drama of prices is still underway, and the EU is now pressure for what it considers a fair and balanced agreement before July, when the prices will take effect.
EU strategic offer
According to Maroš Šefčovič, EU trade commissioner, the European Union offers an increase of 50 billion euros in purchases of American products.
The investment of 50 billion euros aims to soften increasing trade tensions with Washington. Šefčovič told Financial Times that the EU was making “certain progress” in its negotiations with the United States, but the EU has clearly indicated that it would not accept the price of 10% recently imposed by President Donald Trump as a fair result.
THE proposal Will also help close what the United States perceives as a trade deficit of 50 billion euros with Europe. Šefčovič said that this commercial gap could be quickly concluded if Europe increased its imports of American goods such as its liquefied natural gas (LNG), soybeans and other agricultural products.
“If what we consider a problem in the deficit is 50 billion euros, I think we can really solve this problem very quickly,” he said.
The block has been working to prevent a full -fledged transatlantic trade war since Trump's announcement of a 10% rate on most countries on April 2. The US government has also proposed a “reciprocal” rate of 20% for the EU.
The additional 20% tariffs were finally suspended to authorize 90 days for negotiation, but the initial price of 10% remains in place, and other tasks could be added in July if no agreement is concluded between the nations.
Šefčovič explained that the EU is working on a “balanced and fair” agreement, not the one that locks high prices.
“It will be very difficult to conclude an agreement which is clearly good and acceptable to our Member States and our European Parliament,” he said.
Reprisal measures are still on the table
The EU has so far adopted diplomacy during commercial talks, but the block has not neglected to prepare for the worst.
The European Commission, the agency responsible for negotiating trade agreements on behalf of the 27 EU member states, described the two incentives for an agreement and reprisal measures in the event of the negotiations.
On the theme of reprisal measures, the EU has a reprisal price of 21 billion euros ready for American products such as Harley-Davidson motorcycles, poultry and clothing. The price is currently interrupted until July 14.
“We will work meticulously with each Member State to have a solid response, which would have unanimous support,” said Šefčovič.
The Commission recently informed its ambassadors about the two negotiation tactics such as carrots and sticks in order to prepare the block for any result.
Šefčovič stressed that if the EU puts pressure for a resolution, it is firm to reject the prices it considers unfair. When asked directly if the EU would accept a 10% tariff reference as a compromise, Šefčovič replied that such a level is “very high”.
The EU has shown that it was open to adjustments and cuts announced by the US government. Adjustments include changes such as relief for the automotive sector. Šefčovič suggested that this was probably in response to warnings about potential economic benefits.
Šefčovič also said that the EU was ready to cooperate with the United States on broader world commercial challenges, including those related to China. He proposed to work together to solve problems such as the overcapacity of steel and aluminum, the development of semiconductors and the reduction in the dependence of critical raw materials.
“We think we can really really realize together,” said Šefčovič.
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