Brussels Prepares Fast-Track Trade Deal to Meet Trump’s Demands

Officials familiar with the plan said the European Commission, which oversees trade policy for the bloc, will also extend reduced tariffs to select U.S. seafood and agricultural products. The effort represents a concession by Brussels, with policymakers acknowledging that the arrangement gives the U.S. a greater advantage but provides European companies with long-term stability. As Bloomberg reported, Commission President Ursula von der Leyen has described the deal as “a strong, if not perfect deal.”

The urgency comes as Trump has repeatedly threatened to impose fresh penalties on countries taxing digital services, while also criticizing EU antitrust measures targeting major U.S. technology companies such as Google and Apple. Under the current framework, European cars and auto parts face a 27.5% U.S. tariff. Per Bloomberg, the U.S. has agreed to reduce overall tariffs on EU goods to 15%, but Trump has stipulated that car exports will not benefit until the bloc enacts legislation removing industrial duties.

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Should the EU deliver the proposal by the end of the month, the lowered tariff rate on European car exports will be applied retroactively to August 1. The stakes are high, particularly for Germany, which exported nearly $35 billion worth of automobiles and parts to the U.S. last year.

In a departure from standard procedure, the European Commission plans to forgo an impact assessment, normally required before such policy shifts, in order to accelerate implementation, Bloomberg reported.

Source: Bloomberg