Whilst France, Germany and Italy are struggling to deliver a coordinated message, the European Commission reiterated on Friday 4 May that it wanted a full and permanent exemption for the EU from the US customs duties of 25% on imports of steel and of 10% on imports of aluminium, before engaging in discussions on other transatlantic trade-related issues.
"Discussions are continuing at different levels between the Commission and US administration following the announcement (by US President Donald Trump) of the prolongation (for one month, until 1 June) of the US customs duties on imports of steel and aluminium", a Commission spokesperson said on Friday.
"As the president of the European Commission, Jean-Claude Juncker, repeated (on Wednesday 2 May), we do not negotiate under threat. Once the EU is permanently exempted from the tariffs, we will remain available to work on a positive transatlantic trade agenda that would allow us to address other issues of common interest", he added.
The Commission also repeated that it was preparing a package of counter measures to the possible imposition of the US taxes. These counter measures would be "compatible with WTO rules", providing particularly for customs duties on US exports up to €2.8 billion (see EUROPE 11983).
To settle the issue, European Trade Commissioner Cecilia Malmström and US Commerce Secretary Wilbur Ross opened a dialogue process on transatlantic trade on 21 March, but this has not yet resulted in anything concrete (see EUROPE 11986, 11988).
The member states meanwhile are struggling to speak with one voice on the message to give to Washington. Whilst France clearly reflects the Commission, Germany and Italy do not hide their desire for a wider agreement including a tariff reduction on certain products and putting aside the thorniest issues of the TTIP negotiations (which have been at a standstill since the departure of Trump's predecessor at the White House, Barack Obama –see EUROPE 12014).
"The way out from the EU-US trade deadlock is to strive for an agreement on tariffs/non-tariff barriers, leaving all controversial TTIP chapters aside. We put that forward during our EU Presidency. Showdowns between the EU and US are wrong and dangerous", Italy's Economy Minister Carlo Calenda stated on 1 May.
"The EU countries must engage in robust discussions to reach a common response to the US threat of imposing customs duties on imports of steel and aluminium", a spokesperson from the German government stated on Friday. "I can't speak about a timetable because that must be established at European level. It is important to have discussions quickly in order to reach a common European position", he added.
During the European Council on 23 March, several European leaders stated they did not want talks with the US for a 'TTIP-lite' that would just include treatment of tariff barriers (see EUROPE 11989). (Original version in French by Emmanuel Hagry)