The European Union’s top negotiator, Maros Sefcovic, has said he believes the 27-member bloc could close the trade gap with the United States by agreeing to buy more liquid natural gas (LNG) and soybeans.
“If what we are looking at as a problem in the deficit is 50 billion euros [$56 billion], I believe that we can really ... solve this problem very quickly through LNG purchases, through some agricultural products like soya beans, or other areas,” Sefcovic said.
The EU, which Trump said charges the United States 39 percent in tariffs, was handed 20 percent reciprocal tariffs.
In response, the EU’s two-party retaliatory tariffs on goods ranging from dental floss to diamonds were paused until July 14, “to give negotiations a chance.”
The list of goods on the retaliatory tariffs list was shortened after pressure from member states, with bourbon, wine, and dairy—from the major wine and spirit-exporting nations of France and Italy—removed after Trump threatened a 200 percent counter-tariff on EU alcoholic drinks.
‘Astronomical Figures’
Sefcovic told the FT that the combined potential levies against the EU were “astronomical figures“ and that he had told the White House that ”this is unjust, this is unfair.”The United States and the EU have been holding negotiations over recent weeks to discuss a way forward.
Sefcovic said the EU would not accept the 10 per cent tariffs on its goods as a fair resolution to the negotiations.
He said all 27 members of the EU “want us to negotiate” but were prepared to impose more retaliatory tariffs if no deal was reached.
But he said he wanted to strike a “balanced and fair” deal with the U.S. negotiators.
“But we’re also prepared to respond with countermeasures. And protect ourselves against indirect effects through trade diversion.”
On April 7, Trump said: “The European Union’s been really tough over the years. We have a [trade] deficit with the European Union of $350 billion and it’s going to disappear fast.
“One of the ways that that can disappear easily and quickly is they’re going to have to buy our energy from us ... They can buy it, we can knock off $350 billion in one week.”