EU Proposes Tariff Deal with US, But Threatens Counter-Tariffs

EU's Trade Stance with the US

• 🇪🇺 The European Union prefers negotiations over retaliation and has offered a "zero-for-zero" tariff deal to the United States for industrial goods.
• 🤝 Europe is presented as being ready for a mutually beneficial deal, similar to agreements made with other trading partners.

EU's Counter-Measures and Concerns

• ⚖️ EU trade ministers met to discuss potential counter-measures, including the use of an "anti-coercion instrument" to penalize countries using economic threats.
• 🎯 This instrument could target US services and limit US firms' access to public procurement tenders within the EU.
• ⚠️ Some member states, more exposed to US trade, are hesitant about using such aggressive measures, highlighting a need for a united front.

US Demands and EU Rejection

• 📉 Washington has requested the EU lower non-tariff barriers, such as food standards regulations and Value Added Tax (VAT).
• 🚫 Brussels considers lowering VAT a non-starter, as it is a crucial source of income for member states' budgets.

Imminent Tariffs

• 📈 Two waves of European tariffs on US imports are scheduled to take effect within the next five weeks.
• 🔙 These tariffs are a direct response to the US levies on steel and aluminum imports.