Optimism prevails within the EU regarding the possibility of a mutually beneficial trade joint statement between the European Union and the United States on tariffs. The European Commission has achieved good progress in the framework of the trade agreement with the US and there may be an agreement within the next few days, stated Trade Commissioner Maros Sefcovic.
Read: Politico: Trump proposal to EU for basic 10% tariff and exemptions in “sensitive sectors”
The Commissioner told MEPs that he hopes European negotiators will complete their work soon, now having additional time at their disposal, after the US extended the original deadline from July 9 to August 1. “I hope we achieve a satisfactory result, possibly even within the next few days,” Sefcovic said.
US tariff postponement until August 1
The Trump administration announced Sunday the postponement of extensive tariff implementation until August 1, giving breathing room to countries negotiating new trade agreements with the US. Tariffs for countries that fail to reach an agreement will return to April 2 levels.
The sending of relevant notifications began Monday with South Korea and Japan, which will face 25% tariffs from August 1 if no agreement is reached.
EU negotiations with Trump administration
European Trade Commissioner Maros Sefcovic is in open communication with the American government, following the phone call between President Trump and European Commission President Ursula von der Leyen on Sunday. Diplomats reported that Sefcovic briefed EU ambassadors, emphasizing that the Commission does not expect to receive one of the letters with new tariffs.
The framework of the trade agreement remains unclear and diplomats emphasize that whatever is agreed upon must have Trump’s final approval.
Sensitive sectors in trade negotiations
Washington gave no indication whether it intends to exempt politically sensitive industries, such as:
• Automotive
• Steel and aluminum
• Pharmaceuticals
Conversely, countries like France, Italy and Ireland are expected to be satisfied with possible exemptions on aircraft and alcoholic beverages in the new trade agreement.
