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Brussels wants to increase the purchases of US goods by € 50BN to address the “problem” in trade relations, the EU main negotiator said, adding that the block is making “a certain progress” towards hitting an agreement.
But Maroš Šefčovič, the EU Commercial Commissioner, suggested in an interview with the Financial Times that the Block would not accept Washington by holding 10 percent fees for his goods as a fair resolution for commercial talks.
The steep tariffs will be set in the EU and numerous places in early July, leaving the block race to avoid a full transatlantic trade war.
The US and the EU had made progress through numerous rounds of negotiations inside and the phone since President Donald Trump decided, then stopped, 20 percent fees in the Block, Sefcovic said. He added that his “ambition” was still to hit a “balanced and straight” deal with the White House.
Šefčovič said that the main argument he was making to American trade representative Jamieson Greer and the Secretary of Commerce Howard Lutnick was considering exports of American EU services, which would bring about the overall trade deficit with Europe in just about 50bn €.
This can be closed rapidly by deal to buy more gas and US agricultural products, he said.
“If what we are seeing as a deficit problem is € 50 billion, I believe we can really. Solves this problem very quickly through LNN purchases, through some agricultural products such as Soyabeans, or other areas,” said Sefcovic.
“What is very important is that I think we understand each other a little better, what is their position, where are they coming from? And I think they understand a little better,” he added. “I think we have a little more understanding about the figures.”
But he warned that it would be “very difficult” to reach an agreement that was “clearly good and acceptable to our member states and our European Parliament”.
Trump on April 2 set an additional minimum fee of 10 percent in almost all countries, while proposing additional “reciprocal” tasks for some trade partners, including 20 percent in the EU. Trump later suspended additional “reciprocal” measures, giving partners 90 days to negotiate.
Sefcovic said that possible combined taxes threatened against the EU by Trump were “astronomical figures … We clearly communicated this to us:” This is unfair, that’s unfair. “
Asked if he would accept a 10 percent tax as a floor in trade talks, Sefcovic said the EU considered it a “very high level”, suggesting that the Block would not choose a tariff deal at that level.
Since the tariff announcement, which overthrew global stock markets and hit the costs of borrowing Dollari and US, Trump has weakened some of the measures, offering fragments to sectors such as the automotive industry.
“I see there have been some, let’s say, adjustments or corrections,” said Šefčovič. “I’m sure I was not the only one to show some of the potentially negative consequences.”
Trump’s “reciprocal” fees against the EU would be additional to 25 percent sectoral tariffs in steel, aluminum and EU cars, which remain in the country.
In exchange for partial repetition, the EU banned the vengeful tariffs of € 21 billion of American goods, including Harley-Davidson Motorcycles, Birds and Dresses until July 14th.
The European Commission negotiates trade measures on behalf of 27 EU member states. Šefčovič said that all capitals “want us to negotiate” but were prepared to support further revenge if there were no agreements.
The Commission on Wednesday evening, ambassadors of privately informed member states in the areas in which it can provide incentives for the US, but also for the preparations of a new possible tariff package against America.
“It will not be easy, but we will work meticulously with any member state to have a strong response, which would have a unanimous support,” said Šefčovič.
Veteran Slovak, who said he was in constant contact with negotiators from other countries also trying to make a deal with Trump, said the EU was also ready to cooperate with the US to help address the influence of China’s export growth as a sweetener for a trade agreement.
“We believe that we can actually achieve a lot together, especially the overload of steel and aluminum that work together in semiconductors, overcoming addictions on critical raw materials,” he said.
