Bratislava – The European Union is preparing for the possibility that trade negotiations with the United States may not yield a favorable outcome. If acceptable solutions cannot be achieved, the EU is ready to safeguard the interests of European businesses and citizens. This announcement was made on Wednesday, May 30, by European Commissioner for Trade and Economic Security Maroš Šefčovič during a session with the Committee for European Affairs of the National Council of the Slovak Republic. He elaborated on Thursday that the EU aims to boost purchases of American goods by 50 billion euros to ease existing trade tensions, according to TASR.
“I must stress that we are also preparing for the scenario where these negotiations do not lead to a positive agreement. The discussions are challenging and tumultuous, and so far, we have not managed to reach a satisfactory agreement with any nation,” Šefčovič stated at the National Council.
He pointed out that while the United States is a crucial trading partner for the EU, accounting for 13 percent of global trade, Brussels is keen on enhancing relationships with the remaining 87 percent. This involves seeking ways to lower tariffs, open new markets for European businesses, and promote EU agricultural products.
In a Thursday interview with the Financial Times (FT), he mentioned that Brussels is making “some progress toward reaching an agreement” with the US administration but emphasized that he would not view the retention of the ten percent tariffs by Washington as an equitable resolution. This tariff was implemented by the administration of former President Donald Trump in early April, establishing a minimum customs charge on nearly all imports, as noted by Reuters.
In March, the US imposed a 25 percent tariff on cars, steel, and aluminum from the EU, followed by a 20 percent tariff on additional EU imports in April. This rate was subsequently halved by July 8, providing a 90-day timeframe for negotiations aimed at achieving a more comprehensive customs agreement.
In response, the EU put its own plans for retaliatory tariffs on hold and proposed eliminating tariffs on all industrial goods from both regions.
“If we identify the trade deficit as being 50 billion euros, I am confident that we can address this swiftly by increasing purchases of LNG and agricultural products like soybeans, among other areas,” Šefčovič mentioned in his conversation with FT.
The European Commission reports that the US’s trade deficit with the EU, including services where American companies excel, stands at exactly 50 billion euros as of May 2.
“If we identify the trade deficit as being 50 billion euros, I am confident that we can address this swiftly by increasing purchases of LNG and agricultural products like soybeans, among other areas.” Maroš Šefčovič
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