The European Commission is preparing a list of potential duties to US services, as well as export control measures, in the context of new 30% of new tariffs announced by US President Donald Trump, who are expected to come into force on August 1.
However, as the Financial Times points out, the European Commission should present it to the EU Member States.
Although Brussels has previously warned that they could extend the US trade war in the service sector if talks to avoid duties have not shown specific measures in European capitals.
One of the officials stressed that the list would not only focus on US technology companies, which have a huge influence on Trump’s White House.
The list will be added to the proposal, which foresees retaliation to the annual US imports of 72 billion euros, already being discussed by EU countries, which includes duties on Boeing aircraft, cars and Berbon.
According to a source cited by the FT, the latest proposal reported will also include taxes in digital services. Commission President Ursula von der Layen had threatened with this action in an interview in April.
“One example is that you can impose a tax on revenue from digital advertising,” he said then.
It is noted that the US has a deficit in the trade of goods with the EU but a surplus of services, which makes them more vulnerable to retaliation in the area.
“It is not really projected that there can be an acceptable balanced agreement between the US and the EU. It is therefore important to prepare,” said Berd Langa, chairman of the European Parliament’s Commerce Committee.
“US technology giants are getting a large part of their revenue in Europe and the US has an annual surplus of about $ 100 billion.”
“That is why it is necessary to prepare a third step on the scale of escalation: a tax on digital services.”
The Union may activate its enforcement regulation in order to draw up the retaliation list, which should then be approved by the Member States.
The last package also includes the first export controls, which will add fees to the exports of steel scrap and certain chemicals.
European metal waste is sent to the US, where they melt in electric arc bakeries to reuse new steel products.
The EU and the US have been negotiating since April to reach a trade agreement when Trump announced “reciprocal” duties 20% on EU imports. They then reduced them to 10% to give the negotiations before the July 9th deadline for July 9.
On July 13, Trump threatened to increase duties to 30% from August 1st.
According to the two officials, the EU could accept 10% duties, but seeks to reduce the additional 25% imposed specifically on the automotive sector in the context of any agreement.
In addition, it seeks to secure exception from possible future duties that Trump has announced for critical areas, such as medicinal products and semiconductors.
EU Commerce Chief Maros Sefcovic is in Washington for talks with his US counterparts. On Monday, he said there is still a “large gap” between the two sides. Although the EU seeks to reach an agreement, it said that “all means” are being considered for retaliation measures.
The Commission has postponed until August 6th a separate duty plan on US $ 21 billion annually imports, which had been drawn up in response to Trump’s separate duties to imports of steel, aluminum and cars from the EU – to give time.
Source :Skai
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