[Source/Observer Network by Ruan Jiaqi]
Local time on the 15th, Bloomberg News reported citing informed sources that this week the EU and the US made little progress in bridging trade differences. According to them, officials from the Trump administration said that most of the tariffs imposed by the US on the EU will not be canceled, including the 20% reciprocal tariff temporarily reduced to 10% within 90 days, as well as other tariffs targeting industries such as automobiles and metals.
Two EU diplomats interviewed by the Financial Times also confirmed this matter and said that the US clearly informed the EU that even after the negotiations end, Washington will maintain a certain level of tariffs. The US did not explain how the EU could reduce these tariffs, leaving the EU side confused.
According to reports, on Monday (local time), EU Commissioner for Trade and Economic Security, Vazquez, met with US Commerce Secretary Ross in Washington to discuss how to cancel so-called reciprocal tariffs imposed by the US, as well as steel, aluminum, and automobile tariffs.
Those who are familiar with the relevant discussions revealed that the two-hour meeting made no progress, and the US did not indicate its demands in the trade negotiations. Vazquez still found it unclear about the US position after the meeting, making it difficult to determine their intentions.
The EU diplomat mentioned earlier complained that the chaotic situation within the Trump administration makes it hard to distinguish between real policy intentions and negotiation strategies. He said, "They often change attitudes. It's also difficult to differentiate who has authority to speak and whose words have no influence."
"Maintaining tension and keeping everything in a 'temporary' state has almost become a norm," the diplomat added.
The European Commission refused to comment on the level of tariffs but called for the US to clearly articulate its specific requirements. On Tuesday, EU Trade Affairs Spokesperson Gill (Olof Gill) said, "We need to hear more from Americans. We need a clearer understanding of what they hope to achieve in these negotiations."
He said, "The EU is doing its part. Now, the US needs to clarify its stance. As in every negotiation, it must be a two-way process... both sides should benefit."
Gill also reiterated that Vazquez reaffirmed the EU proposal for mutual exemption of industrial product tariffs. However, Bloomberg reported that the US rejected this proposal.
An official from the Office of the US Trade Representative responded that they would not disclose details of the negotiations. The spokesperson for the US Commerce Secretary did not immediately respond to requests for comments.
Another official from the US Trade Representative's office told the Financial Times that many countries have responded positively to the US negotiation willingness, and negotiations are progressing rapidly. US officials have communicated with EU officials multiple times on the necessity of reducing tariffs and non-tariff barriers, outlining the president's trade policy agenda.
EU-US trade situation. Chart by Bloomberg News
According to Bloomberg News, the aforementioned informed sources revealed that although US officials hinted that sector-specific measures will continue, some tariffs on automobiles can be offset by increasing investments, production, and exports in the US. However, they speculated that if there is no boost in US exports, tariffs may continue to increase in the future.
Data from the US Department of Commerce shows that last year the US imported over $52.3 billion worth of new cars from the EU, while exports to the EU amounted to only $1.13 billion, mostly SUVs produced by German manufacturers BMW Group and Mercedes-Benz Group.
These sources also said that the US hopes European chemical enterprises will produce more precursors for the pharmaceutical industry in the US, integrate supply chains, and enjoy priority procurement rights, suggesting that the EU raise drug prices. Vice President Pence previously claimed that many European drug prices are low because Americans are subsidizing their healthcare.
In terms of steel and aluminum tariffs, and potential future tariffs on copper, these sources disclosed that the US hopes the EU proposes a plan, hinting at the possibility of joint taxation. They stated that it is unclear whether some of the ideas proposed have received broader support within the government, but pointed out that some of them "do not comply with WTO rules."
In addition, the US insisted on discussing non-tariff barriers that Washington deems significant, such as digital and artificial intelligence regulations and food standards. Both sides will continue discussions at the technical level.
However, EU Trade Affairs Spokesperson Gill reiterated to the Financial Times that EU food safety standards are "sacred and inviolable."
Gill said that Commissioner Vazquez emphasized to the US the importance of building resilient transatlantic supply chains. The commissioner also told the US that the EU and the US face many common challenges and can address them together for mutual benefit.
According to previous reports by Bloomberg News, the European Commission has been formulating a "list of items" for potential negotiation areas, which includes reducing tariffs, regulation, and standards.
The EU also proposed increasing purchases of liquefied natural gas from the US. Although US government officials seem uninterested in this approach to replace tariffs, Trump mentioned this month that energy procurement helps reduce the EU's trade surplus with the US, urging the EU to "buy and commit to purchasing a substantial amount of energy."
Gill added, "The EU will continue to approach these talks constructively to identify areas of common interest. Clearly, to achieve a successful outcome within the 90-day period requires efforts from both sides."
The EU announced on the 14th that retaliatory tariffs on $21 billion worth of American goods will be postponed until July 14 for the purpose of negotiating with Washington. Gill said that the EU is continuing to formulate further measures against other tariffs in case an agreement cannot be reached.
Bloomberg News added that the EU has begun preparing additional countermeasures in case this happens. Meanwhile, the EU is accelerating efforts to reach trade agreements with various countries to improve the operation of its single market.
On the 11th local time, President of the European Commission von der Leyen said that during the 90-day negotiation "buffer period," the EU seeks to reach a "fully balanced" agreement with the US.
She also emphasized that if negotiations with Trump fail to end his tariff war with Europe, the EU is prepared to use its most powerful trade measures and expand retaliation to include US services. The EU may impose tariffs on US digital technology companies, potentially including taxation on digital advertising revenue.
This article is an exclusive contribution from Observer Network and unauthorized reproduction is prohibited.
Original source: https://www.toutiao.com/article/7493712424894202405/
Disclaimer: The views expressed in this article are solely those of the author. You are welcome to express your opinions by using the [Upvote/Downvote] buttons below.