Member States may be ready to accept 15 percent. The customs tariff, and EU officials press to cover sectors such as cars – said diplomats, cited by Bloomberg. Currently, cars are higher. The consent of the Union countries would mean that the Union would not introduce retaliation duties at 15 % rates.
One of them added that Steel and aluminum imports above a specific contingent would be subject to 50 percent. clip.
According to the information obtained by the “Financial Times”, both sides of the negotiations intend to give up customs tariffs for some products, including aircraft, medical equipment and alcoholic beverages.
EU exporters have been paying an additional 10 % duty for goods sent to the USA since April. Earlier, the tariff was 4.8 percent on average.
Bloomberg's informants claim that although the EU is optimistic about the possibility of reaching agreement, they are also cautious, because every final agreement will require the consent of US President Donald Trump, and his final decision is difficult to predict. The chances of such customs rates are given by the fact that Trump's 15 % duties were accepted by Japan by Trump.
Washington “threatened” the union of up to 30 %, and Japan with 25 %. However, this was the negotiating position of the United States.
The argument of the US President for increasing duties towards all countries of the world is the use of VAT, whose design enables deductible to producers inside the country, but it is not possible for import goods. This creates a barrier comparable to the duties. The US does not have VAT, but only a rotary tax paid when purchasing in the store. The 15 % rate could even out the position of exporters from the USA and other countries.
Will the duty fall on cars?
In the opinion of the sources, which is referred to by the “Financial Times”, a minimum duty of 15 percent. It will apply to products already covered by a higher rate, which is why Brussels perceives this possible agreement as a confirmation of status quo. It would mean that for example Car duties on 27.6 percent today will fall to 15 percent
“FT” confirmed with its informers that if an agreement is not reached by August 1, then the EU will apply a retaliation duties package of up to 30 percent, whose value is estimated at around EUR 93 billion.
