EU ‘ready’ to discuss reduction of ‘all tariffs’ with US | City A.M.
The European Union has said it is prepared to discuss lowering tariffs “in all sectors” if the US drops its punitive levies on aluminium and steel, ahead of a crunch meeting today.
European Commission President Jean-Claude Juncker is meeting President Donald Trump at the White House today in a bid to get the US to drop its 25 per cent tariffs on steel imports, and 10 per cent on aluminium products.
Until now, the EU has held firm, saying there will be no bargaining – instead threatening the US with retaliatory measures on iconic US products such as Harley Davidson motorbikes and bourbon.
However this morning EU commissioner Guenther Oettinger said the bloc would be “ready to discuss a reduction and restructuring of all tariffs in all sectors” provided “the existing punitive tariffs” are lifted first.
“In this way, we want to avoid a further escalation of the trade conflict, and to avoid a trade war,” he told German broadcaster Deutschlandfunk. “One could try to untangle the existing tariffs and then … reduce tariffs for various goods and services.”
“That would be a negotiation that would be possible in half a year, and which we could start with the U.S. in the autumn.”
Oettinger suggested the EU and the United States could try to negotiate a lighter version of a stalled comprehensive U.S.-European trade deal known as the Transatlantic Trade and Investment Partnership (TTIP).
“One could try for a TTIP light,” he said.
However, trade commissioner Cecilia Malmstrom has warned that the EU is prepared to impose $20bn-worth of tariffs on US imports if Trump follows through on his threat to hit European car imports with new tariffs.
Malmstrom told Swedish daily Dagens Nyheteron: ““We hope that it doesn’t come to that and that we can a solution. If not, the EU Commission is preparing a rather long list of many of American goods.”
Last night Trump tweeted that he was hoping for the EU to blink on tariffs.
“The European Union is coming to Washington tomorrow to negotiate a deal on Trade,” he said. “I have an idea for them. Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready – but they won’t!”
The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for them. Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready – but they won’t!— Donald J. Trump (@realDonaldTrump) July 25, 2018
It followed earlier tweets saying “Tariffs are the greatest!” and claiming the US had been “the piggy bank that’s being robbed”.