Talks are continuing between the EU and the US administration to find a negotiated alternative to tariffs before 1 August. The European Commission has stepped up its efforts, with the umpteenth visit by Commissioner for Trade Maroš Šefčovič to Washington on Wednesday 16 and Thursday 17 July. He met his usual counterparts, Jamieson Greer and Howard Lutnick, as well as the US President’s economic adviser, Kevin Hasset.
Once again, the Commissioner had a meeting with the permanent representatives of the EU Member States on his return – during the afternoon of Friday 18 July – to hold a debriefing in reduced format.
According to our information, negotiations with the US administration are still focusing on sectoral tariffs (steel, automotive, pharmaceuticals) and ways in which they could be reduced. The United States currently applies 50% tariffs on imported steel and aluminium, and the EU urgently needs to lower this extremely punitive tariff.
At the same time, the Commission is continuing its work on potential countermeasures, with the presentation of its second package earlier this week (see EUROPE 13681/1) and the preparation of a third. According to Politico, the European Commission has already told the Member States that it is working on additional measures, including taxes on US services in addition to those on goods.
This is in line with what the EU27 are increasingly calling for: firmer negotiating positions (see EUROPE 13680/5).
In Copenhagen on Friday 18 July, a number of industry and internal market ministers sent out the same message. “There are more voices that are talking about making sure that we have leverage that we are firm with the US”, explained Poland’s Undersecretary of State for Economic Development, Michał Baranowski.
“I hope that the position of the European Commission and the position of all the Member States on this issue will converge towards a very united and much firmer position than previously”, Marc Ferracci, the French Minister for Industry, told Agence Europe. (Original version in French by Léa Marchal with Anne Damiani)