EU-US first tariff negotiations… Discussion on zero tariffs for cars and China's steel overcapacity

President Trump, Who Entered Negotiations Through Tariff Deferral (Source: CFR)

The European Union (EU) And The United States Sat At The Tariff Negotiation Table For The First Time To Discuss The Mutual Tariff-Free Application Of Industrial Products Including Automobiles And The Issue Of Excess Steel Supply From China.

At The Meeting Held On The 14th (Local Time) In Washington D.C., Maroš Šefčovič, The EU Commissioner For Trade And Economic Security, And From The United States, Secretary Of Commerce Howard Lutnick And USTR Representative Jamison Greer Attended.

The EU Proposed The Application Of Mutual Tariff-Free Status For Overall Industrial Goods Including Automobiles. In Addition, Issues Such As The Global Oversupply In The Steel And Aluminum Industries, And The Stability Of Supply Chains In Semiconductors And Pharmaceuticals Were Brought To The Negotiation Table. Particularly, The Steel And Aluminum Sectors Are Areas Of Increased Global Supply Imbalance Concern As China Recently Expanded Low-Cost Exports Due To Domestic Demand Slump.

The Meeting Between The Two Sides Continued For Several Hours, Following Which High-Level Talks With The U.S. Treasury Department Were Also Held Separately. It Is Reported That The EU Proposed To Expand Working-Level Negotiations With The United States.

Commissioner Šefčovič Announced On Social Media After The Meeting That "Both Sides Need Joint Efforts And Confirmed The Willingness To Cooperate On Resolving Tariff And Non-Tariff Barriers."

Meanwhile, The EU Initially Planned To Implement Retaliatory Tariffs On Certain U.S. Products From This Day, But This Measure Has Been Postponed Until July 14th Following President Trump's Decision To Defer Reciprocal Tariffs By 90 Days. Attention Is Focused On Whether This First Negotiation Can Lead To A Substantial Agreement Between The Two Sides.