Negotiations between the EU and the United States for the best possible trade deal are continuing, without leading in any clear direction at this stage. Although negotiators on both sides of the Atlantic are talking about progress, the threat of a return to the US tariffs announced on 2 April is still present, and the European Commission is maintaining that it is preparing counter-measures should the talks fail.
Of the solutions proposed by the European Commission to the US, some are becoming more and more credible. Europe’s offer to buy more liquefied natural gas or agri-food products is in line with US demands and therefore seems to be gaining ground.
On the other hand, the proposal for a reciprocal zero tariff on industrial products appears unattractive on the other side of the Atlantic, according to a well-informed senior European official. For this source, a basic tariff of 10% seems, at this stage, to be the most plausible treatment for European products after 14 July, the deadline for reaching an agreement.
An option that the European Commissioner for Trade and Economic Security, Maroš Šefčovič, described as unsatisfactory for the EU in the columns of the British newspaper the Financial Times. According to this newspaper, the Commissioner suggested that an agreement could not be reached with a rate of 10%. He admitted, however, that it would be “very difficult” to reach an agreement that would be truly acceptable to the EU.
He also recalled that the Commission had the support of the Member States for a robust response in the event of a breakdown in negotiations. This clear support expressed over the last two months has enabled the Commission to move forward calmly and concretely with the preparation of potential retaliatory measures, according to our information.
Another option raised by a European source would be to extend the truce by 90 days, thereby repeating a pattern familiar to partners across the Atlantic, who have historically had difficulty reaching agreements on trade issues. (Original version in French by Léa Marchal)