According to Reuters, on Wednesday (23), the trade agreement on the taxation of imported products from the European Union with a destination for the United States may change from 30% to 15%.
Given the tensions experienced by both sides in recent years in the business, Donald Trump’s government has increased the value of 5% to 30% tariffs on products imported from Europe, being more specific to cars and medicines.
In order to reduce the percentage, the EU proposed to negotiate with the US government. In one of the proposals was the application of 15% to some branches. As a result, the United States would be willing not to charge extra tariffs on some union specific products as part of an agreement. In the case of steel and aluminum imports that exceed predefined quotas may face a rate of up to 50%
However, European members have prepared to respond to the US if the values remain high. Germany, for example, supported the idea of applying retaliation measures, called “anti-coercion measures” that would affect services and other American sectors.
The European Union also observed the agreement that Japan had closed with the US, where a single rate of 15% on cars was established, and could be a possible model for its negotiations, as the tariff model between countries was considered as the most affordable. In addition, with the rate rising to the EU, it would reflect on the Japanese automotive sector
Who will make the final decision on the proposal will be Donald Trump.
