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TMTPOST -- The European Union on Monday Denied a reported new offer, part of efforts to reach a trade deal with the United States to ease the transatlantic trade war.
Credit：China Daily
The EU is considering accepting a flat 10% tariff on all exports to the U.S. on certain conditions as permanent in bid to prevent higher duties on critical sectors such as automobiles, according to German business newspaper Handelsblatt. The proposal, on a temporary basis, was offered to the Trump administration as a strategic concession, the daily newspaper reported on Monday.
“The offer to US counterparts would come only under certain conditions and would not be billed as permanent,” the paper reported, citing senior EU negotiators,” the paper cited high-ranking European negotiators.
In return, the EU was prepared to cut its auto tariffs on U.S. imports and could remove some technical or legal hurdles to make U.S. automakers easier to sell their car in the region, according to the German newspaper. The EU was also reported to offer ban purchases of Russian natural gas, a possible way to create more demand for U.S. producers.
The European Commission later Monday dismissed the aforementioned report, saying the reported news didn’t reflect current discussions. "Negotiations are ongoing, and no agreement has been reached at this stage. The EU has from the start objected to unjustified and illegal U.S. tariffs," the Commission said in a statement.
The EU members on April 9 have voted in favour of the European Commission's proposal to introduce trade countermeasures against tariffs on steel and aluminum imports imposed by the United States.The European Commission estimated a total of nearly €21 billion worth of goods imported from the U.S. will be affected.
U.S. President Donald Trump said later April 9 in the post he has authorized a 90-day pause and “a substantially lowered reciprocal tariff” of 10% during this period, both effective immediately. The decision was made as more than 75 countries have called the U.S. to negotiate a solution to trade, trade barriers, tariffs, currency manipulation, and non-monetary tariffs, and these countries have not retaliated against the U.S., Trump wrote.
European Commission President Ursula von der Leyen said in a statement on April 10 the EU will put its countermeasures over U.S. tariffs on hold for 90 days.
The EU has readied for possible countermeasures in case of failure to reach agreements with the Trump administration.The European Commission on May 8 said it has launched a public consultation on a list of US imports for the possible EU countermeasures, if ongoing EU-U.S. negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The list of U.S. goods, which could be subject to the countermeasures, is totally worth of €95 billion, covering a broad range of industrial and agricultural products.
Trump on May 23 vowed to slap a 50% tariff starting on June 1 as negotiations between the EU and the United Sates “going nowhere.” However, after a phone with von der Leyen,Trump on May 25 said he would hold off until July 9, the same deadline as Trump’s 90-day pause of his proposed 20% reciprocal tariffs on EU that is set to end.
In a post on X on May 25, von der Leyen said “Europe is ready to advance talks swiftly and decisively”, adding that “to reach a good deal” needs the time until July 9.
Von der Leyen on Monday met with Trump on the sidelines of the G-7 summit in Canada, pledging again to accelerate trade negotiations aimed at avoiding a massive new round of tariffs.
“I discussed with President Trump critical issues, from Ukraine to trade,” said von der Leyen in a X post. “On trade, we instructed the teams to accelerate their work to strike a good and fair deal.”