MNI: EU's Sefcovic Heads To US To Avert Tariff Escalation
MNI (LONDON) - European Trade Commissioner Maros Sefcovic plans to head to Washington this weekend in a bid to avert the threat of escalation in the EU-U.S. tariff war, an EU trade official told MNI.
"Sefcovic was commanded to go and to figure out if there is room for negotiation," the source said.
EU states - led by France - are putting increasing pressure on the European Commission to try and negotiate a deal with the U.S., following the threat of 200% tariffs on EU champagne and wine exports, the source added.
"The EU is therefore making the effort to negotiate and see what is on offer.
On the U.S. side, the country's "steel states" are putting pressure on the Trump administration not to back down from its decision last week to impose 25% tariffs on steel and aluminium, EU sources said. (See MNI: EU Defence Bond Approval To Pave Way For Summer Issuance)
The EU responded with the threat of tariffs on EUR8bn of imports from April 1. The extension of this to a further EUR18bn of imports is currently being discussed with member states and industrial stakeholders and could be implemented in mid-April.
Some EU states fear that the Commission's swift and strong retaliation against the steel tariffs, which has so far not been copied by other U.S. trade partners, like the UK and India, may have further demonised the bloc in the eyes of the Trump administration.
"Maybe the EU offer to cut its tariffs on autos from 10% to 2.5% will be one carrot. But they will probably need to come up with something more."