Brussels mulls offer of trade deal to Trump, if he drops tariff threat

Source: Politico-Europe




The plan, which the Commission is discussing with member countries, aims to win exemption from steel and aluminum tariffs.

By HANS VON DER BURCHARD 4/13/18, 7:58 PM CET Updated 4/14/18, 2:16 PM CET

The European Commission is developing a plan to offer Donald Trump the prospect of a trade deal with the EU in exchange for a permanent exemption from U.S. steel and aluminum tariffs, according to five EU officials and diplomats.

The plan, which has strong backing from Berlin, has been raised in bilateral discussions with France, Italy and other EU countries. It foresees offering the U.S. a scoping exercise in which both sides would analyze the content and feasibility of a potential trade deal.

The aim is to use the prospect of a trade deal as a bargaining chip to exclude the EU from punitive tariffs of 25 percent on steel and 10 percent on aluminum announced by the American president last month. The U.S. subsequently exempted the EU from the tariffs until May 1 pending further discussions, although Trade Commissioner Cecilia Malmström has demanded that the EU be permanently released from the tariff threat.

“In our ongoing talks with the American side, we are insisting on getting a full exemption from the announced steel and aluminum tariffs. Once that has been agreed, we would be open to discuss various possible ways of reducing trade irritants,” said a Commission spokesperson.

Read more: https://www.politico.eu/article/brussels-eu-donald-trump-trade-deal-if-he-drops-tariff-threat/