Duty to 15 percent. This is the commercial agreement that could reach the United States and the European Union, according to what the Financial Times.
The agreement on the duties at 15 percent
The British newspaper, citing informed sources, claims that a 15 percent rate could be applied to European goods that reach US customs. It would therefore be a reduced revised rate: in this way, Brussels would accept the “so -called mutual duties” to avoid the threat of the American president to bring them to 30 percent by 1 August. However, these rates would be added to those already in force of 50 percent on aluminum and steel, to those of 25 percent on cars and the generalized ones of 10 percent on the rest of the EU exports. Both parties, however, would therefore give up on duties on some products, including planes, alcohol and medical devices, have affirmed the sources to the British head.
The agreement would also include the most favorite nation clause (which corresponds to an average of 4.8 percent for EU-US commercial exchanges), with some exemptions still to be defined. The EU could in turn reduce the most favored nation duties or bring them to 0 percent for some products in the context of the agreement.
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The financial newspaper also adds that the Commission would have illustrated today the draft agreement to the ambassadors of the Member States, following the talks with the Americans.
What is the commercial situation between the two banks of the Atlantic
With the commercial policy implemented by President Donald Trump, since April European exporters are paying additional duties of 10 percent on the assets sent to the USA, which have been added to the existing rates of 4.8 percent. The 15 percent duties provided for by the possible agreement would therefore include current rates. But Brussels aims at the top: he would like to push Washington to let 15 percent lower current duties on cars that reached 27.5 percent.
But the one reported by Financial Times It is, for now, only an indiscretion. Brussels has developed all the measures to respond to Trump’s commercial policy. Now the ball passes in the field of the US President.
In the meantime Brussels prepares its countermeasures. In addition to the rates of 93 billion euros for US products (the vote of the 27 member countries for the green light will be held tomorrow), but at the same time it is ready to activate the anti-coercion tool, the so-called commercial “bazooka”. If the negotiation between the European Union and the United States of America does not lead to any acceptable result, the majority of the EU countries would support the activation of the mechanism.
What is the anti-coercion tool and what to do to activate it
Entering in force in December 2023, the mechanism was designed to defend Brussels and its Member States from threats or economic pressures implemented by third countries with the aim of influencing political or legislative decisions. A defense tool, rather than attack, which provides for a long and complex process before reaching the adoption of any countermeasures.
In fact, it is up to the European Commission to evaluate whether there is concrete tests of coercion. Only in that case can a dialogue with the country involved – in this case, be started – in this case – in an attempt to find a negotiating solution. Only if the Diplomatic comparison Fallisse, Bruxelles could propose retaliation measures, which should be approved by the EU Council within two months. A procedure that, for political times and obstacles, appears anything but immediate.
The anti -coercion tool was introduced precisely to react to similar episodes: its approval, in 2023, came after China had adopted punitive economic measures against Lithuania, guilty – according to Beijing – of strengthening its ties with Taiwan.
The range of the expected measures is large: from the counter-adazi to the restrictions to the import of goods and services by the country held responsible for coercion, to the exclusion of its companies by European public procurement.
The mechanism can also intervene on direct investments, in particular those of companies controlled by the state involved, and to block access to the European market for some service providers, including large technological groups and streaming platforms. In extreme cases, the adoption of black list of companies or individuals, subjected to prohibitions or specific obligations is also provided.
