The European Commission (EC) is ready to accept fixed 10% US tariffs to prevent a trade conflict with Washington, but only under clearly agreed conditions and not as a permanent solution, Handelsblatt newspaper reported.
According to the publication, negotiators in Brussels hope to avoid higher US tariffs on cars, pharmaceuticals and microelectronics with the help of a fixed tariff. However, the United States has not yet agreed to limit its tariffs on European cars to ten percent. If the Americans refuse to raise car tariffs, the EU plans to reduce import duties on US cars and recognize some US product standards in the future.
Brussels also plans to import more liquefied natural gas from the US without violating its own climate goals, Handelsblatt reported. According to the publication, in order to specifically increase demand for American gas, Russian gas should be completely banned.
The EC stressed that the agreement, which provides for a fixed tariff of 10%, is justified only as a temporary solution to avoid a trade war. Moreover, such a tariff is acceptable only if the EU receives economic benefits in return that compensate for the damage, Handelsblatt concludes.
US President Donald Trump initially stated that due to the complexity of trade negotiations with the EU, he planned to introduce tariffs of 50% on imports from the community from June 1. At the same time, he recalled that European companies would not have to pay any duties if they produced their products in the United States. According to the president, one of the main goals of the creation of the EU was to gain an advantage over the United States in trade. However, on May 26, Trump announced that he had agreed to postpone the introduction of a 50% trade tariff on imports from EU countries from June 1 to July 9.