On the eve of the May 18 deadline, US President Donald Trump's decision on the need to impose new customs duties on foreign car imports fell, confirming a 180-day delay in the decision of the President (see EUROPE 12256/12). Europeans and Americans therefore have six months to identify a negotiated solution.
Indeed, in his statement of May 17, President Trump supports the conclusions of the report of the investigation into car imports under section 232 of the Trade Expansion Act, transmitted on 1 February to the White House (see EUROPE 12195/1): "I concur in the Secretary’s (Wilbur Ross) finding that automobiles and certain automobile parts are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and I have considered his recommendations", he said. And to task the US Trade Representative, Robert Lighthizer, to continue negotiations with the EU to address this "threat".
The EU, relieved, clashes
"We welcome that, in spite of some differences, the EU and the US stick loyally and faithfully to the agreement established between Presidents Juncker and Trump in July last year in Washington", a Commission spokesman told reporters on Monday 20 May that this would prevent a further tariff escalation.
Describing their relationship as "close and constructive", the spokesperson stressed that the parties would continue to work together to implement their positive agenda.
To this end, on 22 May in Paris, on the margins of the OECD meeting, a ministerial-level meeting will be held between Trade Commissioner Cecilia Malmström and Representative Lighthizer, the first since the EU adopted negotiating mandates with the United States. These mandates concern the elimination of customs duties on industrial products and conformity assessment (see EUROPE 12234/19).
The meeting, which builds on the technical exchanges that have taken place in recent weeks, "will provide an occasion to discuss how to take this process further", European Commission sources told EUROPE, as well as "how the US President intends to follow-up on the 232 report on cars and car parts".
Ms Malmström recalled, via Twitter on 17 May, what the mandates also clarify: the EU will not negotiate anything illegal at the WTO and, therefore, any form of voluntary export restrictions.
Presidents Juncker and Trump will meet to "take stock" of the implementation of their ‘roadmap’ on the margins of the G20 summit in Osaka on 28-29 June, the Commission spokesman also announced. (Original version in French by Hermine Donceel)