Processes between European Union and United States are intensifiedwith Brussels appearing ready to accept in principle agreement on imposing payments 10% duty In American products. The negotiations are focused on avoiding the escalation of the trade war, with the automotive industry at the center.

To temporary agreement with the US

There is an agreement on the UK standard, with technical talks expected to follow next time. “They are (the Europeans) very tough but now they are very good with us” Donald Trump commented in statements to journalists, adding: “We’ll see what happens. We are probably two days away from sending a letter. We talk to them. I just want to know that a letter means agreement ». The European Commission expects the US president’s long -awaited letter on Thursday, making it clear that each step concerns an agreement on the principle.

The US president’s comments were made while the EU and the US intensify their talks to avoid implementing generalized, mutual duties that were to come into force, but were extended until August 1st.

The pressure of the European automotive industry

German car industry exerts strong pressure for immediate agreement. Germany, as the largest car exporter to the US, is in a vulnerable position on strong US duties. In fact, the car sector contributes about 5% to German GDP. The Union of European Car Manufacturers (ACEA) points out that daily losses for the industry amount to millions of euros. According to the VDA, the German car industry, exports to the US fell by 13% in April and 25% in May compared to the respective months. As a typical representative of Friedrich Mertz pointed out, ‘Time is money’.

European sources, however, estimate that it is difficult for the EU to secure the same level of US market access to the United Kingdom for key sectors such as steel, cars and other industrial products, given the restrictions derived from Washington’s trade policy.

As the Commissioner of Finance Valdis Dobrovskis notes, the goal remains a direct agreement In principle, with the aim of eliminating the uncertainty that already costs dearly for European businesses. The extension given is expected to be exploited as a window for substantial negotiations of the trade dispute.