The European Union is prepared to engage in discussions with the United States regarding the reduction of car tariffs to avoid a transatlantic trade conflict, as stated by a top EU official on Wednesday.
EU Trade Commissioner Maroš Šefčovič expressed willingness to explore this topic during an event at the American Enterprise Institute in Washington, D.C., just before his meeting with key Trump administration figures.
Exploring a Comprehensive Deal
Šefčovič also mentioned the EU’s openness to a broader agreement with the U.S., which could encompass tech regulations and non-trade issues like defense spending by EU member states.
President Trump has frequently criticized the EU’s 10 percent car tariff, contrasting it with the U.S.’s 2.5 percent levy. This discrepancy has led to threats of reciprocal tariffs and potential duties on various sectors such as automobiles and pharmaceuticals.
Addressing Trade Imbalances
Šefčovič countered Trump’s assertions by highlighting the EU’s relatively open market and comparable average tariff rates on industrial goods. He also pointed out specific tariffs on both sides, including the U.S.’s 25 percent duty on pickup trucks.
While Trump focuses on the goods trade deficit with the EU, Šefčovič emphasized the U.S.’s surplus in services trade with the EU, resulting in a much smaller combined trade deficit.
Preparing for Potential Tariffs
Despite the desire for dialogue, Šefčovič pledged a firm response if the U.S. implements extensive tariffs, emphasizing the need to safeguard European interests.
Meetings scheduled this week aim to underline the benefits of robust trade for businesses on both sides of the Atlantic, with discussions expected to cover various economic aspects.
Focus on Tech Regulation
Brussels is open to talks on tech-related issues with the U.S., but remains committed to defending its regulations, including the Digital Services Act and the Digital Markets Act.
Šefčovič highlighted the significant presence and revenue of U.S. tech giants in the EU, emphasizing the non-discriminatory nature of EU tech rules and collaborative efforts on digital taxation.
Global Trade Dynamics
While emphasizing the importance of the World Trade Organization (WTO), Šefčovič stressed the need for WTO reforms to address modern challenges, particularly in the digital services realm.
He also called for stronger collaboration between the EU and the U.S. to counter the influence of non-market economies within the WTO framework.
