US‑EU trade talks at crossroads amid tariff standoff
Negotiators representing US President Donald Trump are pressing the EU to unilaterally reduce tariffs on American goods; otherwise, they face "retaliatory" tariffs of 20 per cent, reports the British daily "Financial Times".
US Trade Representative Jamieson Greer is set to tell 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 - said "FT" citing individuals familiar with the matter.
The United States is dissatisfied that the EU proposed mutual rather than unilateral tariff reductions, as some other US trading partners have done. Brussels also did not indicate that the digital tax is a matter for negotiation, as Washington demanded.
The EU is pushing for a mutually agreed framework text before talks with the US. However, the negotiating positions of the two sides are too far apart, sources emphasised. "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 US and the EU.
One of the newspaper's informants expressed pessimism about whether the parties can reach an agreement to avoid US 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, emphasised that he would like to reduce the US trade deficit with the EU and proposed that the EU would 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 US and EU. negotiations continue
In March, the US imposed 25 per cent tariffs on cars, steel, and aluminium from the EU, while in the following month, 20 per cent tariffs were applied to the remaining imports from Europe. Trump later announced a suspension of the increased tariffs until 8 July. During the 90-day period, negotiations on the tariffs are to take place, and tariffs will be at a 10 per cent level during this time.
In response to the US 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.
