Merz said in Berlin on Wednesday ahead of a dinner with French President Emmanuel Macron that “we have been hearing that there could possibly be decisions” in reference to ongoing discussions aimed at avoiding expensive tariffs on European goods.
If no agreement is reached by August 1st, the United States has threatened to impose a 30% tariff on EU exports.
After reports that both sides are close to reaching a deal that would impose a 15% tariff on EU goods, a compromise similar to the US and Japan’s most recent agreement, increased this week.
Macron claimed that European leaders and the European Commission had been in “constant contact” to coordinate their response to US pressure.
He continued, “We want to be respected as partners that we are, as well as the lowest possible tariffs.”
Scott Bessent, the US Treasury Secretary, echoed the optimism, telling Bloomberg Television that things were “going better than they had been” and that things were moving forward.
Following the most recent round of discussions, EU Commissioner for Trade Maros Sefcovic and US Commerce Secretary Howard Lutnick held additional discussions with EU member states.
Diplomats claim that Brussels is now under more pressure to accept a compromise due to the recent agreement between Washington and Tokyo, even reluctance.
An EU diplomat told the Financial Times that “the Japan agreement made the terms of the shakedown” clear. The majority of the member states “are holding their noses and could accept this deal”
According to the newspaper, the EU-US agreement might have some restrictions, such as those for alcoholic beverages, medical equipment, and aircraft.
However, the European Commission, which controls EU trade policy, has already put together a strategy to respond with tariffs of more than $100bn in the event of a failed agreement.
Source: Aljazeera
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