The European Union will continue to push for zero tariffs with the US, Paschal Donohoe has insisted. That’s despite the fact that Trump’s first deals have kept 10 percent tariffs in place.
The US administration reached an agreement in principle with the UK last week. Although it will do away with some of Trump’s tariff’s the so-called baseline US tariff on most goods of 10 percent will remain in place.
The UK-US deal will see the Americans drop most sector-specific tariffs on steel, aluminium and cars with Britain. As part of the deal, the UK will allow more US beef to be sold in Europe.
British Prime Minister, Keir Starmer, said that the UK had not compromised on food standards. But Donald Trump later suggested to reporters that chemical-treated beef would be sold to the UK.
If that were the case, it would make it difficult for the UK and EU to agree to ease veterinary checks at next week’s post-Brexit summit.
The European Commission’s trade spokesperson, Olof Gill, said the EU is “closely analysing this trade deal announced between the US and the UK. As always, we will assess its content and its implications carefully, particularly with regards to any effects on EU interests.”
The EU is yet to make a deal with the US. The clock is ticking on the 90-day pause on Trump’s threatened 20 percent tariffs on the EU.
But a compromise does not seem to be in sight.
Asked if the EU might do what the UK has done and accept the US 10 percent tariff, Eurogroup President and former Irish minister, Paschal Donohoe, said the EU was still focused on getting tariffs to zero.
“The [European] Commission and the European Union are handling these, trade negotiations in a very appropriate and very effective way. And they have correctly outlined the further steps that could be taken in the future, but they’re equally correct not to take those steps immediately. Because we are trying to find a way of identifying a negotiated outcome. And the European Union doesn’t concede for a moment that any of the tariffs that are there are ones that should become permanent. But this is the subject of the negotiation that is underway.
Paschal Donohoe was asked whether going for zero tariffs with the US is still realistic.
“We are still very clear in pushing the case for zero tariffs”, he said.
“That reflects the fact that we are such a huge trading partner with the US. And the negotiations now that we’re having with them, I hope they can continue and we can all play our part in lifting the effect of uncertainty on global trade. “