The European Union is preparing for a new round trade tensions with the United States. In the run -up to the introduction of new American import duties on 2 April, the European Commission is working on a so -called “term sheet”. A negotiating document that contains possible concessions to limit the damage to European exports.
New rates no longer to avoid
During conversations in Washington, EU officials were told that the import duties on cars and other products, part of a broader strategy of “reciprocal rates”, continue anyway. The measures are part of President Trumps plan to combat “unfair commercial practices” from, among others, Europe.
Although the US has not yet officially indicated how high the rates will be, Brussels expects that it will be percentages between 10% and 25%. The European Commission is now trying to give a “term sheet” direction to possible negotiations. This includes mutual investments, lowering existing import duties and relaxing regulations and standards.
European services versus American goods
An important point of twist is that the US focuses not only on rates, but also on so-called non-tariff trade barriers. Think of European VAT rules, digital taxes and food standards. According to Washington, these ensure a structural trade surplus in favor of Europe.
Brussels emphasizes that it also imports large amounts of American services – from tech services to online platforms – and that European companies have invested in the US for more than € 5,000 billion.
Wine, cars and steel under fire
Earlier this month, the US already introduced an import tax of 25% on European steel and aluminum. Sectors such as cars, medicines, semiconductors and wood are now being added. Trump even threatened with a 200% rate on European wine and champagne, the EU was allowed to continue with a planned tax on American whiskey.
The EU is now working on a retribution package of possible € 26 billion, which will be presented in mid -April, depending on consultation with the Member States. In addition, other measures are also on the table, such as import quotas, the suspension of previously made trade agreements and restrictions on public procurement.
Tracks respond, conversations difficult
The euro grabbed the news for a short time, while European government bonds went slightly in value. Yet the conversations with the US seem to yield little for the time being. European trading ministers will meet on 7 April to discuss American measures and possible counter reactions. The expectation is that only after the introduction of the new taxes on 2 April will be more clarity about the actual impact and the continuation of the negotiations.
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Source: https://newsbit.nl/concessies-aan-trump-eu-bereidt-zich-voor-op-pijnlijke-handelsdeal/
