EU discussed trade negotiation terms with U.S., as reported by Bloomberg.
Revamped Article:
The Old World is readying to jab the New World with a trade proposal next week, sources close to the situation have spilled to Bloomberg. This document is brimming with ideas to pump up financial exchanges, such as slashing trade barriers, boosting European investments in the States, teaming up on global issues like China's steel shenanigans, and the EU buying American goods, like LNG and tech.
These insiders cautioned that the plan might still get a rewrite as the European Commission carries on chats with member states. If negotiations don't pan out, the Old World is lining up retaliatory actions against the slapped-on tariffs.
A spokesperson from the European Commission clammed up when Bloomberg asked for a comment.
Politico whispered that China's planning to lift restrictions on European politicos as a response to the tariffs. On Mar. 2, the States slapped a hefty 25% tariff on EU steel and aluminum imports valued at around $25 billion. The EU retaliated with retaliatory tariffs on U.S. imports worth a shade under $22 billion, scheduled to drop on Apr. 15 and May 15.
On Apr. 2, Trump announced mirror tariffs for several countries, avec a 20% rate for the EU. However, on the day they were set to be enacted, Apr. 9, Trump put the brakes on them for 90 days. The EU also decided to put its countermeasures on hold and "give talks a whirl."
Bloomberg reports that the progress in the talks hasn't moved mountains yet. With that reality check, the EU is gearing up for the worst-case scenario: a legal spat with the States in the World Trade Organization (WTO). Previously, U.S. reps hinted they have no intention of removing the main tariffs on Brussels.
Insight: The ongoing trade talks between the EU and US are in a preliminary stage, with the Old World striving to straighten out the New World's priorities in light of the uncertain tariff policies and demands of Trump[1]. The main hang-ups in the discussions involve reciprocal tariffs, non-tariff barriers, and legal constraints[2][3].
Tension Details:
- Reciprocal tariffs: The EU is advocating for tariff elimination in terms of reciprocity, but the US seems to be dragging its feet, particularly when it comes to sectors where the EU's 10% tariff overshadows America's 2.5% duty[3].
- Non-tariff barriers: The US insists on tackling Value-Added Tax, food safety rules, and tech regulations, which the EU argues are beyond the scope of traditional trade negotiations[2].
- Legal constraints: The expired US trade negotiating authority (as of 2021) makes it tricky to seal binding agreements. Creative solutions like executive orders might be needed for sector-specific pacts[3].
- The European Union is preparing countermeasures against the tariffs announced by the United States.
- The ongoing trade talks between the EU and US involve discussions about slashing tariffs and boosting financial exchanges through increased investments.
- If negotiations do not pan out, the EU is ready to move to the next stage of retaliatory actions.
- The looming legal spat between the EU and US in the World Trade Organization could stem from charges of non-tariff barriers and legal constraints.
- The EU is advocating for reciprocal tariff elimination, but the US appears slower in addressing sectors where the EU's tariff is significantly higher than the US's.
