trade relations

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.