NHK: EU Strives to Secure Airbus from Tariffs, US-EU Trade Agreement Talks Enter Final Stretch

NHK reported on July 11 that the EU and the US are conducting emergency negotiations on a trade agreement, with ensuring that Airbus is not subjected to high tariffs becoming a core priority for the EU. EU Industry Commissioner Stefan Sorge clearly stated, "Airbus cannot face unfair competition from Boeing," the European aircraft manufacturer currently faces the threat of an additional 10% tariff, which could significantly impact its global competitiveness if it fails to obtain exemption. John Strickland, an analyst at aviation consulting firm JLS, warned that tariff passing on to customers "could significantly suppress demand, thereby affecting Airbus's overall financial returns," he emphasized that Airbus "is absolutely the leader in European aircraft manufacturing."

The negotiations face urgent time pressure; if an agreement is not reached by August 1, the EU's tariffs on goods exported to the US will jump from the current 10% to 50%, affecting goods worth 380 billion euros, accounting for 70% of the EU's total exports to the US. US Transportation Secretary Sean Duffy released positive signals during the Paris Air Show, expressing support for returning to the trade agreement clause from 1979 that exempted tariffs on aircraft and parts, acknowledging that this agreement historically created a trade surplus for the US. At the same time, the draft agreement includes a "car tariff offset mechanism" that will benefit German automakers such as BMW and Mercedes that have factories in the US, but Porsche and Ferrari, which do not have factories in the US, are excluded.

Deputy German Chancellor Lars Klingbeil made a strong statement: "We hope to reach an agreement with the US, but the agreement must be fair - if a fair agreement cannot be reached, the EU will have no choice but to take countermeasures." The EU has completed preparations for a 21 billion euro retaliatory tariff list targeting American goods, focusing on sensitive products such as bourbon whiskey and aircraft, and this measure will come into effect on July 14, setting a final bottom line for the negotiations. EU Commission Spokesman Olof Gill confirmed today that the negotiations are still ongoing, and both sides are working hard to achieve a technical solution before the final deadline.

Original: https://www.toutiao.com/article/1837312699448320/

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