Source: Financial Alliance.
1. According to reports, the EU is revising its proposal for a trade agreement with the USA as a first step to initiate substantive negotiations, even though the Trump administration still lacks a clear position in the talks and has made demands considered unrealistic; 2. Sources say that the USA has welcomed some options proposed by the EU in a potential agreement, but EU officials remain unclear about President Trump's specific requests.
According to sources cited by Bloomberg, the EU is revising its proposal for a trade agreement with the USA as a first step to initiate substantive negotiations, even though the Trump administration still lacks a clear position in the talks and has made demands considered unrealistic.
Informed sources indicate that the new EU proposal will contain more details on how to reduce trade and non-tariff barriers, as well as promote European investment in the USA and the purchase of American products, including liquefied natural gas (LNG) and semiconductors for AI.
Although direct negotiations between the USA and Europe are progressing slowly, several European trade ministers remain optimistic. They believe that with a trade agreement between the USA and the United Kingdom and a 'ceasefire' in trade with China, the USA may be willing to open negotiations with the EU.
"We are seeing some Bullish Signals, as the USA shows signs of cooling down," said Michal Baranowski, Deputy Minister of Economic Development and Technology of Poland. "(The USA) is accelerating negotiations with the EU."
However, the agreement reached by the USA and the United Kingdom still retains a 10% base tariff and may involve additional tariffs on specific Industries, which is unacceptable to many EU countries.
Swedish Minister for Development Cooperation and Foreign Trade Benjamin Dousa stated bluntly: "If the USA-UK agreement is all that Europe can get, then the USA should be prepared to face our countermeasures. We will not accept such an agreement."
EU Trade Commissioner Šefčovič stated that he spoke again with US Secretary of Commerce Raimondo on Wednesday and plans to hold more talks.
Sources revealed that the USA has welcomed some of the options proposed by the EU in a potential agreement, but EU officials remain unclear about the specific demands of President Trump.
One potential obstacle is that Trump views the EU's value-added tax as a non-tariff barrier, whereas EU officials insist that it is not a non-tariff barrier and make it clear that autonomy over taxation and regulation is non-negotiable.
The USA has not yet expressed a willingness to eliminate base tariffs or sectoral tariffs, even if negotiations are successful.
Meanwhile, the EU is also preparing countermeasures to implement against US tariffs in the event of a negotiation failure.
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