INTERNATIONAL
EU is pushing for early US tariff relief, 'stand-still' clause, says senior lawmaker
The EU seeks a quick deal with the US to lower tariffs on steel, cars and exports as talks stall with no firm commitments from Washington. - REUTERS
BRUSSELS: The European Union may be nearing a trade agreement with the United States but is struggling to obtain immediate tariff relief and a commitment not to introduce new measures, the head of the European Parliament's trade committee said on Wednesday.
AI Brief
"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 from the baseline tariffs," said German Social Democrat Bernd Lange, who is not part of the EU's negotiating team, but is in touch with those involved.
The European Commission, which has been negotiating on behalf of the 27-nation bloc, is pushing to reach a framework agreement with the United States by August 1.
It currently faces 50% U.S. tariffs on its steel exports, 25% on cars and a broad 10% tariff on most other exports. A 50% tariff on imported copper is imminent, with levies due soon for semiconductors and pharmaceuticals.
These were not acceptable for the EU, Lange said, as they targeted the bloc's industrial development.
Lange said the main issues in negotiations for the EU were to secure lower tariffs at the point of reaching a framework agreement, rather than waiting weeks or months for a final accord, and a "stand-still clause" meaning it would not face further measures.
He said so far the U.S. had not provided any commitment on these matters.
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AI Brief
- The US has imposed steep tariffs on EU steel, cars, and exports, with more levies on copper, semiconductors, and drugs.
- The EU wants immediate tariff cuts and a halt to new tariffs while a broader deal is negotiated.
- So far, the US hasn't agreed to the EU's key demands, causing uncertainty in the trade talks.
"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 from the baseline tariffs," said German Social Democrat Bernd Lange, who is not part of the EU's negotiating team, but is in touch with those involved.
The European Commission, which has been negotiating on behalf of the 27-nation bloc, is pushing to reach a framework agreement with the United States by August 1.
It currently faces 50% U.S. tariffs on its steel exports, 25% on cars and a broad 10% tariff on most other exports. A 50% tariff on imported copper is imminent, with levies due soon for semiconductors and pharmaceuticals.
These were not acceptable for the EU, Lange said, as they targeted the bloc's industrial development.
Lange said the main issues in negotiations for the EU were to secure lower tariffs at the point of reaching a framework agreement, rather than waiting weeks or months for a final accord, and a "stand-still clause" meaning it would not face further measures.
He said so far the U.S. had not provided any commitment on these matters.