50% tariff threat of Trump: The European Union considers the temporary trade deal with us; Von Der Leyen pushed for ‘agreement in theory’
According to the report by the news portal Politico, the European Union is considering a temporary trade agreement with the United States that will maintain a 10 percent tariff on most exports, according to a briefing to the European Union Ambassadors by the European Commission by the European Commission on Friday.The update came after a major round of talks in Washington on Thursday, where the European Union trade commissioner Maros šefčovič targeted US President Donald Trump’s threat to impose 50 percent tariff on all European imports starting on July 9, if there is no deal.Possible exemption for some areas including the automotive industry will continue, two national authorities told two national officials familiar with the discussion, according to the news portal ..However, the result was seen as weak in many European capitals, especially after the indications before the commission’s interaction team that some industries could get immediate tariff relief. The US currently imposes 25 percent of cars and 50 percent tariffs on steel and aluminum imports.
European Union remains divided
Despite intensive talks, reaching a consensus on a trade agreement with the United States is challenging for the European Commission Chairman Ursula von Der Leyen, proceeding among the ongoing partition between the European Union member states. According to three diplomats, all possibilities, including failure to reach any deal, are still being considered.In a new turn, US authorities allegedly threatened to impose 17 percent tariffs on European food imports, two national authorities confirmed, supporting a report by the Financial Times.An official said Von Der Leyen is expected to hold one consultation with European Union leaders over the weekend before taking a decision in the next stages of the block. Meanwhile, Trump is likely to meet with his advisors on Monday, which means that any official announcement will be delayed by those discussions.
Partition
According to a diplomat in the European Union, the European Commission hopes that President Donald Trump classified America’s trade partners into three separate groups.In the first category, countries where provisional agreements have been signed will later see a constant stagnation on the “mutual” tariff with the possibility of additional tariff relief.The second category includes countries where no compromise has been reached; Here, the country-specific tariffs declared by Trump in April, 20 percent in the European Union case, will be restored while continuing talks.In the third category, countries with stalls or unsuccessful talks will face high tariffs, which will remain in force until the next notice.
Limited deal between partition
Ursula von Der Leyen on Thursday paved the way for a minimum trade agreement, stating that her goal was to secure “agreement in principle”. The step will follow a similar approach taken by the United Kingdom, which maintained a basic tariff, gaining discounts for major areas such as automobile and steel, as comprehensive dialogue continued.However, before Friday’s briefing, several member states of the European Union warned that such a deal would be a clear and unacceptable without a clear and immediate commitment to raise tariffs on important industries with President Donald Trump.German Chancellor Frederick Merz has pushed to a sharp agreement, especially to secure low tariffs for Germany’s major export areas. In contrast, countries, including France, Spain, Italy and Denmark, have urged the Commission to interact with Washington on a more comprehensive and balanced system.Meanwhile, Brussels have placed a potentially second wave of vertical tariffs, which is at an attempt of € 100 billion in an attempt to move forward and to avoid the ongoing transatlantic trade tension.
