Eu Trade Talks: Trump's Demands Clash With Eu's Push For Mutual Gains

The European Union secured a temporary reprieve from threatened US tariffs. However, it's unclear how the EU will reconcile its desire for a mutually beneficial trade deal with Washington's demands. Trump postponed imposing tariffs on EU imports after a call with Ursula von der Leyen, extending the deadline to July 9. The European Commission stated the call added momentum to negotiations. Both presidents agreed to expedite the talks. Details remain scarce regarding progress towards resolving the trade dispute. The EU seeks a mutually beneficial agreement. This includes zero tariffs on industrial goods. The EU also aims to increase purchases of soybeans, arms, and liquefied natural gas. This is part of phasing out Russian gas imports by 2027. One EU official suggested increased purchases of hormone-free beef, similar to a UK-US trade deal. The European Commission will advocate for its "zero-for-zero" tariff offer. This will be discussed in a call between Maros Sefcovic and Howard Lutnick. The EU sees potential cooperation on steel overcapacity and digital technology. The EU wants an end to tariffs on steel and cars. They also want Trump to drop his "reciprocal" tariff. Washington aims to reduce its goods trade deficit with the EU. This deficit was nearly 200 billion euros last year. They have presented Brussels with demands to address non-tariff barriers. These include value-added tax, food safety standards, and digital services taxes. An industry source said Trump desires a quick deal with tangible wins. However, the administration seeks concessions beyond the EU's willingness or ability to agree. Taxes are under the jurisdiction of individual EU member countries. Bernd Lange stated the US perceives trade barriers where none exist. He emphasized that EU standards and regulations are not negotiable. The EU might review specific regulations for excessiveness. They will not adopt all US standards. The Trump administration wants manufacturing to relocate to the US. This includes industries like steel, cars, mobile phones, and semiconductors. Martin Heydon said the EU is correct in pursuing a mutually beneficial deal.