The EU and United States appear to be heading towards a possible trade deal
International News via Reuters:
The European Union’s member countries voted on Thursday to approve counter-tariffs on 93 billion euros ($109 billion) of U.S. goods, which could be imposed should the bloc fail to reach a trade deal with Washington, EU diplomats said.
The 27-nation bloc’s executive European Commission had said on Wednesday its primary focus was to achieve a negotiated outcome with Washington to avert 30% U.S. tariffs that U.S. President Donald Trump has said he will apply on August 1.
The Commission said it would press on in parallel with plans for potential countermeasures, merging two packages of proposed tariffs of 21 billion euros and 72 billion euros into a single list and submitting this to EU members for approval.
No countermeasures would enter force until August 7. So far the EU has held back from imposing any countermeasures, despite Trump’s repeated announcements of tariffs, the broadest of which have been postponed. EU member states authorised the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations.
The EU and United States appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15% tariff on EU goods imported into the U.S., mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision.
Under the outlines of the potential deal, the 15% rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing U.S. duties, which average just under 5%.
There could also be concessions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said.
Washington does not, however, appear willing to lower its 50% tariff on steel.
($1 = 0.8501 euros)
Reporting by Philip Blenkinsop and Benoit Van OverstraetenEditing by Tomasz Janowski and Peter Graff
