EU Envoys Okay Trade Talks with U.S. on Industrial Goods

Trade officials from the European Union’s 28 member nations have agreed to open talks with the U.S. about lowering tariffs on industrial-sector goods, sources tell Bloomberg News.

They say the breakthrough came when France accepted compromise phrasing about environmental goals and the broader trade pact the Trump administration wants with the EU.

The final vote to move forward will be conduced by EU ministers on April 15. Reuters cites a source who says France likely will vote against the measure anyway in protest of Trump administration’s bellicose negotiating tactics and decision to abandon the Paris climate accord.

EU Trade Commissioner Cecilia Malmstrom has opined that an agreement focused on tariffs for cars and industrial goods could be reached quickly. The EU current charges import duties of 20% on U.S.-made vehicles, and the U.S. levies a 2% tax on cars and SUV/crossovers from Europe.

EU Trade Commissioner Cecilia Malmstrom has opined that an agreement focused on tariffs for cars and industrial goods could be reached quickly. The EU current charges import duties of 20% on U.S.-made vehicles, and the U.S. levies a 2% tax on cars and SUV/crossovers from Europe.

The White House has threatened to hike U.S. tariffs on European vehicles to 20% unless it reaches a trade agreement soon. The Trump administration has pushed for broad negotiations that would lower barriers for American farm goods and food products, areas that France wants to protect.

President Donald Trump and EU President Jean-Claude Juncker agreed last July to suspend their escalating trade skirmishes pending results on trade talks. It isn’t clear whether the White House will agree to the narrower scope of discussion being advocated by the EU.