Yet the Commission continues to pursue a strong bilateral trade agenda with the United States. It believes in crafting win-win settlements where both sides benefit. Despite this guarantee, the Commission failed to directly address comments made last Friday decrying these ongoing tariff discussions. Tensions have run high since U.S. president Joe Biden broke cover in April, agreeing a 90-day pause on the proposed tariff plans. This ruling preserves a 10% baseline levy as the absolute minimum.
In a recent blog post, Olof Gill, a spokesperson for the European Commission, illustrated the intricate nature of today’s trade environment. As he noted, increasing tariffs isn’t a “win-win situation” policy tool, and called for a more positive discussion moving forward. To defend the inclusion of oil, Brussels has proposed a “zero for zero” trading proposition. Gill did indeed affirm that no actual formal bid has been extended to the U.S. just yet.
In 2023, the overall trade picture between the EU and the U.S. painted a rosy picture. While the EU exported €319 billion in services to the U.S., it imported a greater amount—€427 billion. The imbalance has sparked criticism from U.S. officials, including former President Donald Trump, who views the trade deficit as exploitation. He blames this imbalance in part on the strength of the U.S. economy and dollar.
Gill also used the opportunity to reaffirm the European Commission’s commitment to reaching a trade deal with Washington by no later than the beginning of July. Reciprocal tariffs will soon target EU goods coming to the U.S. Such an extraordinary circumstance would exert intense opposite pressure on both sides to come to an accord.
“We absolutely are committed to finding agreements with the US that benefit both sides,” – Olof Gill
The EU’s newfound prioritization of service trade in their negotiations provides an unexpected opportunity to start bringing our international trade ledger into balance. Šefčovič, another representative, stated, “There are areas where we believe we can potentially increase our imports from the US, and that would have the additional benefit of reducing … the trading goods surplus that we enjoy and which seems to be such a fixation on the other side of the Atlantic.”
As negotiations progress, both parties face the challenge of addressing longstanding concerns about tariffs while fostering a more equitable trading relationship.
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