EU nations might decide to spending an additional $56 billion on American merchandise to finish the tariff showdown with US President Donald Trump, EU Commerce Commissioner Maros Sefcovic stated in an interview with the Monetary Occasions revealed Thursday.
Sefcovic, who has been main negotiations with the US administration, stated that “sure progress” had been made however the European Union wouldn’t settle for the USA’ 10 % tariff on EU items.
Sefcovic stated that when US providers are taken under consideration, the US commerce deficit with the 27 EU nations is about 50 billion euros ($56 billion) a yr.
“If what we’re taking a look at as an issue within the deficit is €50 billion, I consider that we are able to actually . . . clear up this downside in a short time by way of LNG (Liquefied Pure Gasoline) purchases, by way of some agricultural merchandise like soyabeans, or different areas,” the commissioner instructed the FT.
Trump has stated the deficit is a number of hundred billion {dollars} a yr and has imposed a 25 % tariff on EU-made vehicles, aluminium and metal. Different items have a ten % tariff.
The US president initially imposed a 20 % tariff on EU items however this has been suspended till July and negotiators at the moment are in search of to keep away from a full commerce warfare over the tariffs if this degree comes into pressure.
Sefcovic stated that even a ten % base tariff could be a “very excessive” degree that the EU couldn’t settle for.
The commissioner stated that whereas the 2 sides had a larger understanding of the opposite’s place, it might nonetheless be “very tough” to achieve a deal that was “clearly good and acceptable for our member states and our European parliament”.
This story was initially featured on Fortune.com
