“Decreasing the tariffs, even eliminating the tariffs let’s say for industrial merchandise, that is one thing which we’re prepared to debate,” Sefcovic mentioned. (Chris Ratcliffe/Bloomberg Information)
[Stay on top of transportation news: Get TTNews in your inbox.]
The European Union is able to focus on reducing tariffs on autos and different items because it seeks to go off a commerce struggle with the U.S., the bloc’s prime commerce official mentioned Feb. 19 in Washington.
“Decreasing the tariffs, even eliminating the tariffs let’s say for industrial merchandise, that is one thing which we’re prepared to debate,” Maros Sefcovic — the EU commissioner for commerce — instructed an viewers on the American Enterprise Institute. “Together with prepared to have a look at the tariffs for the vehicles.”
Sefcovic is in Washington for talks with President Donald Trump’s commerce staff, and can meet later Feb. 19 with Commerce Secretary Howard Lutnick in addition to commerce consultant designate Jamieson Greer and Kevin Hassett, the president’s prime financial adviser.
The EU commissioner mentioned the bloc will do its “utmost” to keep away from an escalatory tariff conflict. If the US acts in keeping with Trump’s threats, “we may have no selection however to reply firmly and swiftly,” he mentioned. “However we do hope to keep away from this state of affairs, that means the pointless ache of measures and countermeasures.”
Trump says he’ll impose 25% tariffs on metal and aluminum from March 12. He’s additionally vowing a raft of different costs, together with reciprocal tariffs based mostly on insurance policies of companions which can be seen as obstacles to U.S. commerce. Trump has cited the EU’s value-added tax because the sort of measure he’s trying to reply to.
Trump additionally floated larger auto levies, notably eyeing the Europeans. He’s demanded that the EU decrease tariffs for American vehicles, that are at present at 10%, in contrast with a 2.5% tariff stage within the U.S. However any such transfer would power the bloc to decrease duties for all World Commerce Group members, except the discount is a part of a proper commerce settlement.
RELATED: EU Vows to Tax US Bourbon, Denims, Peanut Butter, Bikes
The European Fee, the EU’s government arm, mentioned on Feb. 18 it hasn’t made any particular supply but to scale back tariffs on imported U.S. vehicles. “Any tariff reductions should be mutually helpful and negotiated inside a good and rules-based framework,” the fee mentioned.
Massive Tech
Sefcovic additionally mentioned Feb. 19 that the EU is prepared for discussions with the US over “massive tech,” including that the bloc’s rules are geared toward defending small companies towards the biggest ones, fairly than focusing on Individuals.
EU guidelines “actually do not need a discriminatory nature, they don’t seem to be geared toward U.S. massive tech,” he mentioned. Trump administration officers have complained that US tech firms get unfair therapy in Europe.
As a carrot in commerce talks, the EU has instructed it might purchase extra liquefied pure fuel and weapons from the U.S. But when negotiations fail, the bloc has been making ready to retaliate rapidly and proportionally to any U.S. tariffs.
German Financial system Minister Robert Habeck, in an interview with public broadcaster ARD, signaled that Europe might re-apply the sort of duties it imposed on the US throughout Trump’s first time period, when he slapped tariffs on practically $7 billion of European metal and aluminum exports.
Again then, the EU replied by focusing on politically delicate firms, together with Harley-Davidson Inc. bikes and Levi Strauss & Co. denims. The perimeters reached a truce in 2021, when the U.S. launched a tariff-rate quota system whereas the EU froze all of its restrictive measures.
Habeck referenced these actions when requested what an EU response to new Trump tariffs might appear like. “They really hit the economic system, particularly the Trump-supporting states, onerous,” he mentioned. “Europe has counter-measures up its sleeve.”
Nonetheless, getting into a tit-for-tat tariff battle with the U.S. wouldn’t solely pose dangers for the European economic system but additionally for the EU’s political stability, at a fragile second when Trump’s diplomacy with Russia has despatched shockwaves by way of the bloc.
