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Tariffs

EU Demands Immediate Tariff Removal in Trade Talks with Trump

Strategic Insights

— 2 min read

European capitals have stiffened their position in trade negotiations with Donald Trump, insisting the US drop its tariffs on the EU immediately as part of any framework agreement ahead of the July 9 deadline. Trade Commissioner Maros Sefcovic has been instructed to take a tougher stance on his upcoming trip to Washington, seeking to remove or significantly reduce the tariffs imposed by Trump in the long term. The EU is pushing for a two-page agreement in principle from the US, covering not just goods trade but also "nontariff barriers" such as digital regulation and food and product standards.

Key Takeaways:

  • The EU has hardened its position in trade talks with the US, demanding the removal of tariffs imposed by Donald Trump as a precondition for any agreement.
  • Trade Commissioner Maros Sefcovic has been instructed to take a tougher stance in negotiations, seeking to remove or significantly reduce the tariffs in the long term.
  • The EU is pushing for a two-page agreement in principle from the US, covering goods trade and "nontariff barriers" such as digital regulation and food and product standards.
  • Ambassadors from EU member states have asked Sefcovic to insist on reductions in the current 10 percent "reciprocal" tariff and sectoral levies from July 9.
  • The EU has struggled to display a united front during almost three months of talks, but European Commission President Ursula von der Leyen has urged leaders to endorse a tougher stance.
  • German Chancellor Friedrich Merz has called for a swift deal that would reduce vehicle tariffs, while France's finance minister has suggested extending the deadline.
  • EU companies have been subject to tariffs on €380bn of annual trade with the US since April, equivalent to about 70 percent of the total.
  • The EU has voted for retaliatory tariffs on €21bn of US exports but has paused implementation until July 14.

Statistics:

  • €380bn: The value of annual trade with the US that EU companies have been subject to tariffs on since April.
  • 70 percent: The proportion of EU-US trade that has been affected by tariffs.
  • €21bn: The value of US exports that the EU has voted for retaliatory tariffs on.
  • 25 percent: The sectoral tariff imposed on cars and their parts.
  • 50 percent: The sectoral tariff imposed on steel and aluminum.

Sources:

  • ANDY BOUNDS -- BRUSSELS European capitals have hardened their position in trade talks with Donald Trump, insisting the US drop its tariffs on the EU immediately as part of any framework deal before the looming deadline on July 9.
  • EU officials quoted in the article.

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