The European Union is willing to accept a trade agreement with the United States that includes a common tariff of 10% on many exports, provided Washington reduces tariffs on strategic sectors such as pharmaceuticals, semiconductors, alcohol and commercial aircraft. The main goal is to achieve a balanced solution, minimizing the negative impacts of high tariffs that are putting pressure on trade between the two sides. With the July 9 deadline approaching, both the EU and the US are stepping up negotiations to avoid widespread 50% tariffs that could trigger retaliation. The article analyzes in detail the steps forward in negotiations, the parties involved and the possible scenarios, providing a reliable insight into the current international trade situation.
EU proposes 10% tariff agreement with the US to balance trade
The European Union has proposed a common tariff of 10% on many of its exports to the US market, coupled with a request for tariff reductions in strategic economic sectors such as pharmaceuticals, semiconductors, alcohol and aviation. This proposal aims to create a fair trade agreement, minimizing the imbalances that are putting pressure on EU businesses.
Although the proposal leans towards the interests of the United States, according to EU officials, it is still a feasible basis for promoting an interim agreement, ensuring the maintenance of stability in bilateral trade relations.
Key industries and requests for tax exemptions
The EU has proposed exemptions or quotas to reduce the impact of high US tariffs such as 25% on automobiles and auto parts, and 50% on steel and aluminum. These measures are intended to protect key EU industries from serious damage caused by heavy tariffs.
In particular, the EU emphasizes the importance of maintaining competitiveness in the industrial and high-tech sectors, in order to ensure long-term benefits for member states.
Negotiation process and expectations of reaching an interim agreement before the July 9 deadline
There is a rush in negotiations as the two sides approach the July 9 deadline to avoid the expected 50% tariffs on most EU exports to the US. The negotiating team, led by EU Trade Commissioner Maros Sefcovic, will travel to Washington to advance the process.
A framework agreement is expected to include issues on tariffs, non-tariff barriers, strategic procurement of goods, as well as cooperation in future areas such as energy and technology.
Key requirements in the interim agreement
The EU is not only interested in reducing tariffs but also proposes to reduce non-tariff barriers through a simplification program, while proposing joint strategic cooperation in areas such as liquefied natural gas (LNG) and artificial intelligence (AI).
The bloc also wants to expand cooperation on economic security challenges, facilitating a sustainable and comprehensive partnership between the two sides.
Risk of failed negotiations and EU countermeasures
In the event of unsuccessful negotiations, the EU has prepared retaliatory measures to protect its trade interests. The first retaliatory list, worth 21 billion euros, focuses on politically sensitive items such as soybeans from Louisiana, poultry, motorcycles, and other agricultural products.
The second list of up to 95 billion euros includes industrial goods such as Boeing aircraft, US cars, and bourbon.
The EU's long-term strategy in the face of US tariff pressure
In addition to tariffs, the EU is consulting with member states on strategic measures including export controls and restrictions in public procurement contracts to target industries where the US is heavily dependent on supplies from Europe.
EU representatives are committed to a balanced outcome, while carefully monitoring the margin the bloc can accept in the final agreement to protect the economic and political interests of the union.
Source: https://tintucbitcoin.com/eu-chap-thuan-thue-quan-trump-xin-mien/
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