The European Union (EU) reported on the 15th (local time) that it focused discussions on mutual tariff exemption for automobiles and the issue of overcapacity in Chinese steel during its first tariff negotiations with the United States.
EU Trade and Economic Security Commissioner Maros Sefcovic initiated tariff negotiations the day before (14th) with U.S. Secretary of Commerce Howard Rutnik and United States Trade Representative (USTR) Jamieson Greer in Washington, D.C.
During this negotiation, the EU proposed applying mutual tariff exemption to all industrial goods, including automobiles, and reportedly discussed global supply overcapacity issues in the steel and aluminum industries, as well as supply chain resilience issues in the semiconductor and pharmaceutical industries.
The global supply overcapacity issue in steel and aluminum discussed by the U.S. and EU appears to stem from China's export of steel products at low prices due to a domestic economic downturn. Previously, both sides expressed concerns regarding this matter.
The first meeting between Commissioner Sefcovic and U.S. counterparts lasted several hours, and a separate high-level meeting was held afterward with the U.S. Department of the Treasury. The EU reportedly proposed a working-level consultation to explore the scope of the agreement further with the U.S. side.
After the meeting, Commissioner Sefcovic posted on social media expressing willingness to cooperate on mutual tariff and non-tariff barriers, stating, “Significant common efforts from both sides are necessary for this.”
Previously, the EU decided to implement retaliatory measures against U.S. steel tariffs starting on this day for the first U.S. products. However, the United States decided to delay the reciprocal tariff for 90 days, postponing the implementation of the measure until July 14.