It is a crucial top meeting: if no deal has been reached before 1 August, there is a threat of trade war between the US and the EU. From that moment on, Trump wants to introduce an extra import tax of 30 percent on numerous goods from the EU, Brussels will then strike back a few days later with taxes on hundreds of American goods.
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Last week Brussels claimed that a deal would be ‘within reach’. There would be an agreement on a basic rate of 15 percent on goods from the EU, with the exceptions of certain products. Trump said on Friday that the chance of a deal is ’50 -50 ‘.
What does Trump want with steel and cars?
Trump has now temporarily introduced a rate of 10 percent for many goods from the EU. A rate of 25 percent applies to cars and even 50 percent for steel and aluminum. It is unclear whether it will be possible to relieve the pain for these two, very important sectors for Europe.
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According to EU diplomats, the European Commission, which negotiates on behalf of all Member States, is trying to agree on a quota. There will then be a lower import levy on steel and aluminum, but this rate rises to 50 percent once the quota has been reached.
Behind the scenes there has been a profit warning in Brussels for weeks: with US President Trump it can all be different at the last minute.
Who will shift it later?
According to international media, Trump is taking his trade minister Howard Lutnick and commercial envoy Jamieson Greer to the top meeting. Both gentlemen have been closely involved in the negotiations with Brussels in recent months.
Von der Leyen takes her right hand Björn Seibert and trade advisor Tomas Baert. In addition, two top negotiators come along: European Commissioner Maroš Šefčovič (trade) and the highly experienced top official Sabine Weyand.
Vs most important trading partner EU
The expectation is that Von der Leyen will give an explanation after the meeting.
There is a lot at stake: the US is the most important trading partner of the EU. Last year, an amount of 334.8 billion euros in goods from the US was introduced, the export is even higher with an amount of 532.2 billion euros. The trade in services provides a more favorable picture for the US.