The European Union and US negotiators are heading for the next week of intensive interviews because they are trying to agree on a trade agreement within 1 August, when US President Donald Trump threatened to hit most of the EU exports with 30% of tariffs.
Officials in Brussels are ready for an unbalanced agreement that favors the US if necessary to interrupt the dead end over the deadline. According to people who last week last week with this matter last week, both parties have to bring a decisive breakthrough, despite the previous round of negotiations in Washington.
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For this reason, the EU also increases preparations for retaliation in a scenario where there is no agreement. The EU ambassadors are ready to fulfill this week to create a plan for measures that would respond to a possible free-deal with Trump, whose attitude to tariff negotiations is considered to stiffen before the deadline.
The US is now visible how the almost universal EU goods are more than 10%, with increasingly less exceptions to aviation, some medical devices and generic drugs, several spirits and a specific set of production facilities needed by the US that people who spoke of anonymity to discuss private negotiations.
A spokesman for the European Commission dealing with business matters for block said that he had no comment in the ongoing negotiations.
Both parties also discussed the potential ceiling of some sectors, as well as a quota for steel and aluminum, and a way to invite supplier chains from sources that excessively complement metals, said people. People warned that even if an agreement was reached, Trump’s signing would require – and his position is not clear.
“I am convinced that we will agree,” said US Trade Minister Howard Lutnick on Sunday CBS Face The Nation. “I think all these key countries find it better to open their markets to the United States than to pay a significant tariff.”
Lutnick added that he soon spoke with European business negotiations.
The US President wrote the EU at the beginning of the month, warning that the block would face 30% of the tariff for most of its exports from August 1. In addition to the universal fee, Trump and the automatic part with 25% fee and steel and aluminum with double intervened. There is also a risk of focusing on pharmacies and semiconductors with new obligations in the next month and recently announced 50% of copper discharge. Overall, the EU estimates that US obligations are already covering EUR 380 billion, ie about 70%of its exports to the US.
Before Trump’s letter, the EU was hoping to move to an initial framework that would allow detailed discussions to continue on the basis of a universal rate of 10% on many block exports.
The EU is looking for wider exceptions than the US offers, and also strives to protect the block from future sector tariffs. Although it has been accepted in the long term that any agreement would be asymmetrical to the US, the EU will assess the total imbalance of any agreement before it decides whether to press the trigger on any re -measures, Bloomberg had previously reported. The level of pain that the Member States is prepared for admission varies and some are open to the higher rate of tariffs, if sufficient exceptions are provided, people said.
Any agreement would also deal with non -tariff obstacles, cooperation in economic security, digital trade consultations and strategic purchases.
With the prospect of abbreviations of a positive result and the upcoming deadline, the EU is expected to prepare a plan to move quickly, if it cannot reach an agreement, people said. Any retaliation decision would probably need political logouts from the block leaders, because the bets are so high, people added.
The countermeasures of any substance would probably cause an even wider transatlantic business crack, given Trump’s warning that retaliation against American interests will invite only the harder tactics of his administration.
Bloc has already approved potential tariffs for 21 billion euros of US goods that could be quickly done in response to Trump’s metals. They focus on politically sensitive US states and include products such as Soya beans from Louisiana, House Speaker House Mike Johnson, other agricultural products, poultry and motorcycles.
The EU has also prepared a list of tariffs for another 72 billion US products in response to the so -called reciprocal fees and Trump’s automotive duties. They focus on industrial goods, including Boeing Co., American cars and Bourbon whiskey.
It also works on potential measures that exceed tariffs such as export control and public contracts.
Bloomberg reported last week that the growing number of EU Member States wants the block to activate its strongest business tool, the so-called anti-Cercion tool, against the US, if both parties do not reach acceptable agreements and Trump with its tariffs.
ACI would give officials a wide range of powers to carry out retaliation. These measures could include new taxes on American technical giants or targeted curbs on US investment in the EU. They could also include restrictions on access to certain parts of the EU market or limit US firms in offering public contracts in Europe.
The Coercion tool was designed primarily as a discouraging means and, if necessary, a way to respond to deliberate coercive steps from third countries that use business measures as a means of pressure to propose a policy of a sovereign block or individual Member States.
The Commission may propose the use of ACI, but it is up to the Member States to see if there is a case of coercion and whether it should be deployed. Throughout the process, the EU would try to consult with a coercive side to find a resolution.
Member States were informed on Friday about the state of business interviews with the USA.
This article was generated from an automated news agency without text modifications.
(Tagstotranslate) European Union
