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The US has threatened to reach EU agricultural exports with 17 percent rates in a turn of its trade conflict with Brussels, according to three people who have informed the discussions.
The eleventh hour place, which EU officials characterized as an escalation of the transatlantic dispute, occurred on a deadline of July 9 to agree a deal between the two trade giants.
US President Donald Trump has paused on the imposition of a “reciprocal” rate of 10 percent on the EU imports, which would have been in operation of 10 percent since April on top of a basic line.
Until the last few days, the EU officials had expected that conversations with the US would hold tasks at the baseline rate.
It was unclear whether the 17 percent at food would be above the other rates that were announced by Trump or instead of them.
Trump has demanded that Brussels gives American companies a variety of exemptions from regulations and lowers his trade with the US, but EU officials have rejected Washington’s latest proposals.
The focus in the conversations is now on carve-outs. One EU official said that aircraft components and -st spirits are under goods for which the block is looking for exclusions.
They added that the two parties were working on an “agreement” in principle of five pages, but this has currently few agreed text in it.
Ursula von der Leyen, the chairman of the European Commission, said on Thursday that she was hoping for a principle agreement that could continue to talk to the parties pending a definitive deal.
Washington, however, urges the countries of Trump’s Deadline.
Maroš Šefčovič, the EU trade commissioner, was warned of the proposed 17 percent tasks on Agrifood on Thursday during meetings in Washington. The 27 Member States ambassadors were informed on Friday.
The value of EU AgriFood export to the US, including products such as wine, was € 48 billion last year.
Šefčovič has repeatedly characterized the change of the EU regulations to fit the US as a red line. However, the EU is also on a deregulating drive, which weakens some environmentalets.
EU countries are divided between accepting some higher rates in exchange for a period of certainty and those who want to take revenge to exert the US to compromise.
Friedrich Merz, Chancellor of Germany, the largest and most export -dependent EU economy, has settled the committee, which manages trade policy. He is afraid of exemptions from Trump’s sectoral rates of 25 percent on vehicles and 50 percent on steel.
According to two people, however, different ambassadors have in the Friday meeting to press for a stronger action against Washington.
Two EU diplomats said they had been told that the US had outlined three scenarios before July 9: countries with an “agreement in principle” would keep track of 10 percent at a later stage; For countries that have not reached such an agreement, the rates would return to the level announced in April until a deal was concluded; Higher rates would be applied to countries that, according to the US, do not negotiate in good faith.
Since the EU is preparing its possible retribution for American tasks for its products, the Member States have already approved against € 21 billion in annual American exports from July 14. The committee assembles a package of € 95 billion more, including on planes and food.
A committee spokesperson said: “The EU position has been clear from the start: we prefer a negotiated solution with the US, and this remains our priority … at the same time we prepare for the possibility that no satisfactory agreement will be reached.”
The White House still has to respond to a request for comments.
