EU Offers Tariff Cuts to Ease US Trade Tensions
Brussels negotiators proposed a 10% tariff on the EU's exports to the U.S., aiming to prevent higher duties on key sectors. The EU also plans to reduce tariffs on U.S. vehicles and ban Russian gas to boost U.S. imports. These moves may support President Trump's tax cut strategy.
In a strategic move, Brussels negotiators are offering to accept a 10% tariff on all European Union exports to the United States. This initiative hopes to prevent the imposition of higher duties on critical sectors such as cars, drugs, and electronics, according to a report by Handelsblatt on Monday.
The offer, which EU negotiators emphasize is conditional and temporary, aims to secure reciprocal tariff reductions on U.S.-made vehicles and remove technical or legal hurdles presently hampering American car sales in Europe.
Additionally, the EU proposes to entirely ban Russian natural gas imports, potentially increasing demand for U.S. energy suppliers. This stance is partly motivated by U.S. President Donald Trump's reliance on tariff revenues to support impending tax cuts. Nevertheless, U.S. negotiators have yet to agree to limit import duties on EU cars to 10%.
(With inputs from agencies.)
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