The United States insists on implementing a 30% tariff on the European Union next month, attempting to force the EU to reach an agreement quickly. As the August 1 deadline set by Trump approaches, the EU is continuously negotiating with U.S. trade officials while drafting a series of countermeasures.
White House Press Secretary Leavitt stated that the European Union is "very positive" about reaching an agreement and is exploring "plans to reduce tariffs and non-tariff barriers that have long harmed the interests of American workers and businesses."
She emphasized that Trump will not accept a delay. Trump's policy has been humorously referred to as 'TACO' by the market, a term derived from Trump's tendency to first announce high tariffs and then later postpone or reduce them.
Michal Baranowski, Deputy Minister of Economic Development and Technology of Poland, stated that in the efforts to reach an agreement, the EU's strategy is first to engage in sincere negotiations with American officials.
Baranowski mentioned in an interview with CNBC's "European Morning Edition" on Friday: "Second, if we cannot come to an agreement, we are prepared to take countermeasures. We have countermeasures ready for the steel and aluminum tariffs as well as the initial 72 billion euros 'reciprocal tariff' proposal."
He continued, "Third, we are engaging with other countries affected by American tariffs, not necessarily to coordinate, but to understand the positions of other nations, as they find themselves in similar situations negotiating with the U.S."
Baranowski stated, "Fourth, we are actively strengthening Europe's competitiveness."
Baranowski from Poland said that the EU is the "most important economic partnership" for the U.S. and added that Washington, like Europe, "has as much to gain or lose from this relationship."
The Vice President of the European Commission, Maros Sefcovic, recently traveled urgently to Washington for consultations. If new tariffs are implemented, they will severely impact this 27-country alliance — last year, trade between the U.S. and Europe reached 1.68 trillion euros (an average of 4.6 billion euros per day), accounting for 30% of global trade. Trump has repeatedly criticized the European Union for its "unfair" trade surplus with the U.S.
As part of the efforts to reach a U.S.-EU framework trade agreement, the European Union is reportedly planning to offer reciprocal reductions on car tariffs to the United States.
According to the Financial Times from the United Kingdom last Thursday, this move would result in the EU eliminating the 10% tariff on U.S. car exports, provided that the Trump administration lowers its tariffs in the industry to below 20%.
Last Friday, when the Consumer News and Business Channel (CNBC) contacted the EU’s executive body, the European Commission, the Commission declined to comment on the report.
Earlier this year, Trump imposed a 25% tariff on foreign-made cars and parts, which particularly severely affected companies across Europe.
For example, Sweden$Volvo AB Unsponsored ADR Class B (VLVLY.US)$The car company reported on Thursday that its operating profit significantly declined in the second quarter, stating that this result reflects the challenging environment the Industry continues to face. This automaker is considered one of the European automotive manufacturers most severely affected by U.S. tariffs and was the first regional car manufacturer to report its earnings, with expectations that this will be a tough earnings report season.
Editor/melody