A top European Union official recently met with key Trump administration officials in an effort to address potential trade conflicts and promote fairness in trade relations. The European commissioner for trade and economic security highlighted the importance of reciprocity, as outlined by American partners during the meeting.
The discussions centered around President Trump's proposal to impose higher taxes on imports from Europe to align with tariffs faced by American products. This plan includes considering the value added tax (VAT) in Europe, which could significantly impact import taxes and potentially lead to a broader trade dispute if retaliatory measures are imposed by the EU.
Trump has also suggested sectoral tariffs on various goods, such as autos, pharmaceutical drugs, and computer chips, in addition to existing steel and aluminum tariffs. The EU official attempted to draw parallels between the VAT and a sales tax, emphasizing that it is ultimately paid by the final consumer.
During the meeting, the industrial overcapacity of China, particularly in steel, was discussed as a common challenge that the U.S. and EU should address collaboratively rather than targeting each other. The EU official expressed a desire to find ways to generate positive momentum in trade discussions and avoid resorting to measures and countermeasures.
Establishing a personal relationship with U.S. counterparts was deemed critical by the EU official, who emphasized the need to maintain momentum in the dialogue to prevent potential negative outcomes. The meeting concluded with a shared commitment to explore avenues for constructive engagement and cooperation in trade matters.
