Summary of the Article: EU-US Trade Deal & Concerns Over Potential Trump Tariffs
This article details growing concerns within the European Parliament regarding a recently negotiated trade deal with the US, particularly in light of the possibility of Donald Trump returning to power and reinstating or expanding tariffs. Here’s a breakdown of the key points:
Core Concerns & Lange‘s Amendments:
* Fear of Expanded Tariffs: There’s significant anxiety that Trump, if re-elected, will broaden the scope of tariffs to include sectors like industrial machines and robots, and perhaps add taxes on imports for chip production, medical technology, and mechanical engineering.
* Lange’s Proposals: Bernd Lange, a key figure in the European Parliament, is pushing for amendments to the trade deal to protect European interests. These include:
* Withdrawal Clause: Brussels shoudl have the power to withdraw tariff reductions if trump imposes new tariffs.
* time Limit: Tariff reductions for the US should be limited to two years,after which the previous tariffs woudl be reinstated or renegotiations would begin (to comply with WTO rules).
* Reciprocity: The EU should leverage the deal to push for the reduction of existing US tariffs on steel, aluminum, and copper.
* Support from Greens: Anna Cavazzini, Chairwoman of the Internal Market Committee (Green Party), supports Lange’s proposals, stating the current deal is ”so bad” she can’t support it without safeguards. She points to existing clauses allowing the EU to suspend the agreement if the US doesn’t comply.
Political Dynamics in the European Parliament:
* Potential for Broad Support: MPs from the far-left and far-right may also support Lange’s amendments, stemming from their previous criticism of the deal (demonstrated by motions of no confidence against Ursula von der leyen).
* EPP’s Hesitation: The EPP (European People’s Party), the largest group in Parliament, is being cautious. While not enthusiastic about the deal, they see it as the ”best of many bad options.” Andreas Schwab (CDU) suggests they aren’t strongly motivated to push for changes but might agree if it appeases other MPs.
* Lange’s Confidence: Lange believes he can sway EPP MPs, as Trump’s tariffs impact many European companies reliant on steel and aluminum.
EU Response & Broader Strategy:
* EU Steel Tariffs: The EU Commission is proposing increased tariffs on steel imports (halving duty-free allowances and adding a 50% tariff) to protect its steel industry from Chinese competition and to pressure the US for further negotiations.
* Council Discussion: Member states in the Council are already discussing potential changes to the agreement, recognizing the economic damage caused by Trump’s tariffs.
* economic Pressure on the US: The article suggests that the economic consequences of Trump’s tariffs – higher prices for US consumers and disrupted supply chains – might eventually curb his protectionist policies.
In essence, the article highlights a growing effort within the EU to fortify the trade deal with the US against potential backsliding by a future Trump administration, prioritizing the protection of European industries and economic stability.