EU, US Discuss Reciprocal Tariffs, Seek Mutual Benefits
Background
The United States and the European Union (EU) are engaged in negotiations over reciprocal tariffs that have been proposed by US President Donald Trump. The US has threatened to impose tariffs on EU automobiles, while the EU has indicated a willingness to lower tariffs on US pick-ups and trucks.
EU Commissioner’s Position
Maros Sefcovic, the European Commissioner for Trade, emphasized that the EU does not accept the principle of reciprocal tariffs imposed by the US. However, he stated that the EU is open to discussing reciprocal tariff reductions if the US is also willing to lower its tariffs on pick-ups and trucks, which currently stand at 20 to 25%.
Sefcovic stressed the importance of mutual benefits in any tariff agreement, stating, "Reciprocity must be beneficial for both sides." He also highlighted the need for a broader perspective on the US-EU trade balance, noting that the US deficit is closer to 50 billion euros, according to Eurostats data.
Trade Imbalance and Global Impact
Sefcovic pointed out that the US has a significant surplus in services, which partially offsets the deficit in goods. He emphasized that the overall trade deficit is not as large as claimed by the US President and that it is a manageable amount within the context of the overall trade volume between the two partners.
Sefcovic underscored the global significance of US-EU trade, which accounts for over 30% of world trade. He warned that any failure to reach an agreement could have far-reaching negative consequences for the global economy.
Call for Collaboration on Steel and Aluminum
In addition to the tariff discussions, Sefcovic addressed the US announcement of tariffs on steel and aluminum, which are set to take effect on March 1st. He urged the US not to target each other’s steel and aluminum industries, emphasizing that the EU’s highly specialized production is essential for US businesses.
Instead, Sefcovic suggested that the US and EU focus on addressing issues of global overcapacity in steel and aluminum production, which is driven primarily by China. He believes that such collaboration would benefit both parties in the long run.
Conclusion
The negotiations between the US and EU over reciprocal tariffs and other trade issues are ongoing. The EU remains opposed to unilateral tariffs imposed by the US but is willing to engage in discussions to find mutually acceptable solutions that benefit both sides. The EU also emphasizes the importance of addressing the global issue of overcapacity in steel and aluminum production, and urges cooperation on this matter.
