European Union Trade Commissioner Maroš Šefčovič has announced that the bloc is making progress towards a trade deal with the United States, which would involve the EU purchasing €50 billion more of US products. In an interview with the Financial Times, Šefčovič stated that the deal would address the “problem” in the two superpowers’ trade relationship. According to CNN, the EU trade commissioner suggested that the Trump administration would need to abandon its 10% across-the-board tariffs on European goods as a precursor to any trade arrangement.
The tariffs, which were put in place last month by President Donald Trump, have been a point of contention between the US and EU. Trump has repeatedly made false claims about the EU, stating that it was “formed for the purpose of taking advantage of the United States.” The 10% tariff on all trading partners, including the European Union, remains in place. Šefčovič told the Financial Times that he spoke with US trade representative Jamieson Greer and commerce secretary Howard Lutnick on closing the United States’ trade deficit with Europe by buying more liquefied natural gas (LNG) and agriculture.
As CNN reports, Šefčovič stated that “if what we are looking at as a problem in the deficit is €50 billion, I believe that we can really… solve this problem very quickly through LNG purchases, through some agricultural products like soyabeans, or other areas.” However, he added that it would be “very difficult” to reach an acceptable deal for EU member states and parliament.
The trade relationship between the EU and US has been fraught since the Trump administration briefly placed a 20% reciprocal tariff on all goods from the bloc on April 2, which Trump referred to as “Liberation Day.” Shortly after, he paused those tariffs for 90 days. The EU then announced its own 90-day pause on countermeasures against the United States. “We want to give negotiations a chance,” European Commission President Ursula von der Leyen said at the time.
According to CNN, the bloc had announced those retaliatory tariffs in response to steel and aluminum tariffs announced by Trump in March. The whipsaw turns have left markets, governments, and consumers alike confused and worried about what’s next.
As reported by CNN, Šefčovič’s comments offer a glimmer of hope for a trade deal between the EU and US. However, with the tariffs still in place, it’s unclear what the future holds for the two superpowers’ trade relationship. As Šefčovič noted, finding a solution that works for both sides will be a difficult task.
The ongoing trade tensions between the EU and US have significant implications for the global economy. A trade deal between the two superpowers could help to alleviate some of the pressure, but it’s unclear whether an agreement can be reached. As CNN continues to report, the situation is being closely watched by markets, governments, and consumers around the world.
In conclusion, the European Union’s trade commissioner has announced that the bloc is making progress towards a trade deal with the United States. However, with the tariffs still in place, it’s unclear what the future holds for the two superpowers’ trade relationship. As reported by CNN, the situation is complex and finding a solution that works for both sides will be a difficult task.
The news was originally reported by CNN, who quoted Maroš Šefčovič, the European Union’s trade commissioner, as saying that the bloc is making “certain progress” toward a trade deal with the United States.
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