France, Italy, and Spain are actively working to prevent Bourbon Whiskey from being added to a list of products targeted by the United States as part of ongoing trade disputes. The list aims to safeguard the wine and spirits industries in these EU countries from further retaliatory measures by the US.
Since March 24, the United States has retaliated with multiple rounds of tariffs against EU goods. This goes up to a 25% duty on steel and aluminum, a 25% tariff on cars and a 10% tariff on all EU imports. Consequently, these tariffs currently cover almost all of EU exports to the US at around 70%. This mounting trade battle has led EU officials to work deeper and more intimately with their American partners.
EU official Maroš Šefčovič, for example, has visited the US three times to do this work. His latest engagements have included meetings with Ambassador Jamieson Greer, the US trade rep. We hope a high-level follow-up meeting between Šefčovič and Greer will soon be realized in Brussels or at an upcoming OECD meeting.
Matthias Jørgensen, another EU official, informed Members of the European Parliament (MEPs) that the US believes it has achieved a more balanced trade environment through these tariffs. He stated, “With these tariffs the US thinks it has evened the playing field.”
The EU is under immense pressure as the lobbying blitz intensifies. To say that the competition is fierce to have a US product included on the final list is an understatement. Within this picture, the aircraft sector remains a major concern for many EU member states.
Šefčovič emphasized the importance of mutual respect between both parties, saying, “We will be flexible. It is quite clear: each side needs to continue to respect each other’s regulatory autonomy.” He asserted that “letting the current unbalance persist indefinitely is not an option.”
The trade war that erupted in the Trump administration has caused enormous disruptions. The EU is intent on continuing the conversation with the US in the face of these challenges. A previously-filed retaliation package was put on hold after this announcement.
EU officials are clearly doing what they can to lower the temperature on this issue even as they are rightly insistent that “EU legislation is not on the table.” In their article, they argue to keep open lines of communication at the technocrat as well as the politician level as a matter of first principle.
“What is encouraging is that we are engaging actively both at expert and political levels,” – Maroš Šefčovič
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