The European Union and the United States were due to reach an agreement on tariffs by 9 July. The US administration has finally extended the deadline to 1 August. If this gives us more time, “I hope to reach a satisfactory result, potentially even in the coming days”, European Commissioner for Trade and Economic Security Maroš Šefčovič told the European Parliament on Wednesday 9 July.
He indicated that he was working with his American counterparts on a joint statement, which will serve as an agreement in principle for more detailed negotiations in the coming weeks. The European commissioner had further talks with US Secretary of Commerce Howard Lutnick on Tuesday 8 July and was due to speak to US Trade Representative Jamieson Greer on 9 July.
While waiting for the final outcome, the EU knows, in broad terms, what to expect: the Americans intend to maintain the basic horizontal tariff of 10% as part of an agreement. According to the chairman of the Parliament’s Committee on International Trade, Bernd Lange (S&D, German), the EU could potentially benefit from greater flexibility in certain sectors. “I see that there might be a corridor for some understanding in the tariff situation on steel, on cars and of course, also regarding some possible exceptions to the basic tariff”, he told the press on Wednesday 9 July.
The day before, US President Donald Trump threatened the entire world with tariffs of 50% on copper and 200% on pharmaceutical products.
In this context, MEPs are demanding strong guarantees as part of an agreement. According to Bernd Lange, this involves a substantial reduction in customs duties, but also the signing of a clause that freezes the tariff situation and prevents future tariff increases by the US president.
“We need conversation, not confrontation”, insisted Jessika van der Leeuwen (EPP, Dutch) during a debate on the subject between MEPs. Her EPP colleague Jörgen Warborn (Swedish), for his part, wants reassurance that the terms of the agreement will respect World Trade Organization (WTO) rules.
At first sight, a 10% tariff on European products would not comply with international trade rules. It doesn’t meet the conditions for a rate authorised by the WTO as part of a trade agreement, nor does it respect the most-favoured-nation principle, according to which the same rate must be applied to all third countries.
Faced with this situation, several MEPs from different political groups are calling on the Commission to quickly implement countermeasures. “A deal shouldn’t come at any cost. We must be willing at any point to adopt countermeasures”, according to Svenja Hahn (Renew Europe, German). Her compatriot Anna Cavazzini (Greens/EFA) criticised the German chancellor’s call for a swift agreement while neglecting its substance.
The PfE and ECR groups stressed the need to protect Europe’s already fragile industrial sectors. Séverine Werbrouck (PfE, French) spoke about the spirits sector and the case of French cognac in particular. “What commitments can you guarantee us so that this exceptional sector, and more generally French agriculture and the French economy, are not used as bargaining chips in what promises to be a very tough battle?” she asked. (Original version in French by Léa Marchal)