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Trade talks between the European Union and the United States are moving “in the right direction” despite a new challenge: the Donald Trump administration has doubled duties on steel and aluminium imports, which has already caused concern in Brussels. This was reported by Reuters.
On Wednesday (45 June), the US raised its metal duties to 50%, up from the previous 25%. The EU sees this move as destabilising at a time when the parties are actively engaged in consultations to avoid a trade escalation.
“We agreed that we are moving in the right direction, at the right pace,” said Maroš Šefčovič, Vice-President of the European Commission and EU chief trade negotiator, after the meeting in Paris.
“There is progress, the dialogue is constructive, and we agreed to review the framework of the negotiations from a new perspective.”
On the US side, his counterpart, Jamison Greer, also described the meeting as “constructive” and noted that Washington sees the EU’s desire to find a “real basis for mutual trade”.
The increase in duties has stirred up metal markets, especially aluminium. The EU emphasises that both sides have the same problem – oversupply of steel – and should address it together. At the same time, the UK is the only country to have reached a preliminary agreement with the US during the 90-day “pause” in the imposition of duties.
At the same time, the EU is expressing concern about China’s restrictions on the export of rare earth metals, which is already affecting production, particularly of car parts, and BMW has reported disruptions in its supply chain.
Instead, President Trump is calling on other countries to come up with “best offers” to avoid new tariffs that could be introduced as early as July.
