Brussels hoped for a deal about taxes. Now Trump threatens by 50 percent

Afraid of a new battle in the trade war with Donald Trump? The European Union has stood for hotter fires, wandering spokespersons and diplomats on Friday to whom it wants to hear. But the very hope of a deal between the EU and the United States has been gone for the time being. The US president had previously threatened on Friday with import duties of 50 percent on all goods that come in from the EU from the US, from 1 June.

« The EU is fully committed to an agreement that works for both of us, » wrote Maros Sefcovic, the European Commissioner for Trade, Friday evening in a tweet. « Trade between the EU and the US is untracement and must be based on respect, not on threats. » It was a statement full of euphemisms.

Until Trumps dissatisfaction, Europeans are hardly prepared for the desired concessions that the White House insists on. « Our conversations with them are not going anywhere! » He grumbled on Truth Social, his own social network.

Then a planned phone call between Sefcovic and his American segments, Jamieson Greer and Howard Lutnick still had to take place. They are more diplomatic, but so far have not commented less determined: if the EU does not cross the bridge with a good offer, the US will not recover for extra taxes.

Earlier was via the Financial Times Leaked that Greer was disappointed about the recently shared European opening bid in the negotiations. That would be way too scanty.

In the meantime, Trump repeated his Truth Social Derigement in the White House. « Our deal is 50 percent, » he told reporters. « To add that he wanted to consider » a little delay « if European companies would move their production to the US.

Not completely surprised

The EU was attacked by Trumps announcement. Last Sunday, the 27 national ambassadors in Brussels were briefed about the state of negotiations by the senior official on the trade file, Sabine Weyand. Nothing was said about an imminent escalation. But many diplomats were not completely surprised either.

The American negotiator team has a long and difficult wish list. For example, the White House wants Brussels to make it easier for American companies to do business in the EU and to sell goods. The US consider the relatively high European quality and security standards that more difficult to do so as a protectionist instrument to keep competition out of the rest of the world out.

The Americans also object to the import duties imposed by the EU and against VAT and digital taxes that levy national governments in the EU. Ursula von der Leyen, the European Commission President, and European Commissioner Sefcovic have offered to delete the European taxes on cars and other industrial goods on both sides of the ocean, but the committee does not want to turtle its standards. The high levies that the EU uses for many foods are also sensitive because of the strong agricultural lobby.

Trump said earlier that the EU will be confronted with general taxes of 20 percent from mid -July, unless there is a deal. Until that time, taxes of 10 percent, with higher levies of 25 percent, apply to cars, steel and aluminum. The European Commission has threatened with its own taxes, but that is not preferable.

Two weeks ago, the US reached an agreement with the United Kingdom. The British celebrated that deal as a success, but still had to accept a tax of 10 percent. In Brussels, the agreement already strengthened the feeling that a limited tax of 10 percent would be the highest attainable for the EU. After the call from Greer and the Trump tirade, that even seems impossible.

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