The European Commission has adopted the necessary legal procedures to suspend counter-tariffs for six months. Member states now have two months to approve the suspension by qualified majority, announced Olof Gill, spokesperson for the EU Commission. The approval from the 27 member states will be conducted via written procedure.
The European Commission is in an “advanced” stage of drafting the non-binding joint text for the tariff agreement with the United States, according to a senior EU official. However, no publication date for the declaration was provided. Brussels is currently awaiting feedback from Washington on “the final details” of the text, which aims to “provide greater clarity” for transatlantic trade. The document will also outline initial guidance on potential exemptions, though these will remain subject to negotiation until the agreement is finalized.
“Not all EU products of interest will immediately be on the exemption lists” from the US 15% duties, stated a senior EU official. Products affected include alcoholic beverages, wine, beer, numerous medical devices, chemicals, and other strategic categories for Europe. Brussels is seeking “zero duties or at least the Most Favored Nation (MFN) rate” of 4.8%, but this is “work that will continue in the coming months.” The EU aims to secure “the maximum number of exemptions,” the official added, noting that “agreement already exists on some sectors, like aircraft and components, which will be reflected in the joint declaration.”
US duties on EU automobiles are expected to drop “very, very soon” from the current 27.5% to the 15% rate outlined in the deal struck by Donald Trump and Ursula von der Leyen, reported a senior EU official. The current rate consists of a 25% duty plus an additional 2.5% applied under the MFN clause. The official explained the delay in implementing the reduction stems from the fact that the executive order signed by Trump on August 1 only applied to the so-called reciprocal duties announced on April 2, while sectors like autos, pharmaceuticals, and steel follow a separate track.