How to react in the event of a failure to agree on tariffs: the dilemma shaking the EU
Consensus among the 27 for a quick understanding in principle, retaliation controversial. Even in the event of a quick agreement then, the unknown is whether it would suspendthe current US tariffs on certain sectors such as steel and aluminium.
from our correspondent Beda Romano
3' min read
3' min read
BRUSSELS - It is a fine ridge that the European Union is treading in its painful trade negotiations with the United States. There is certainly a consensus among the Twenty-Seven to quickly find an agreement in principle with Washington in order to avoid a damaging economic war. Should no room for an understanding be found, the member states would have to decide whether and how to respond to American unilateral choices. On this front, the debate among the Twenty-Seven is still open.
An EU spokesman explained on Friday evening: 'The EU position has been clear from the beginning: we are in favour of a negotiated solution with the US, and this remains our priority. Progress was made towards an agreement in principle during the last round of negotiations this week. After discussing the state of play of the issue with our Member States, the European Commission will return to discussions with the US again at the weekend'.
We know the subject of the negotiations. There are currently tariffs in place that were decided at the time by the Trump administration: 50% on steel and aluminium, 25% on cars, and 10% on a whole range of other products. In the absence of agreement, the White House has threatened further tariffs of up to 50%. The latest diplomatic meetings between the Twenty-Seven have shown a growing consensus in view of a quick framework-agreement, which would put an end to the uncertainty of the last months.
According to information gathered yesterday in Brussels, the European Commission itself is pushing the Twenty-Seven to accept a quick deal (which would then have to be negotiated in detail). However, a diplomat noted yesterday: 'There is still too much confusion about the terms' of a possible compromise. Moreover, he added, 'an agreement in principle might not suspend the heavy sectoral tariffs, pending one or more final agreements. And that would be a problem'.
On Wednesday 9 July, the grace period with which US President Donald Trump suspended the so-called reciprocal or horizontal tariffs, announced in April, for 90 days will expire. In recent days, the White House has heralded a series of trade measures against a dozen partners with whom negotiations are slow. Threat for the future, in case of no agreement, or blackmail for the present, during the negotiations? Probably both.
