EU Trade Chief Heads to U.S. on Monday for Crucial Trade Talks

The EU trade commissioner, Maroš Šefčovič, plans to visit Washington on Monday for discussions with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, according to a statement made on Friday by Commission spokesperson Olof Gill.

The Commission aims to make progress in talks about tariffs following several weeks of stalemate.

“The EU is willing to find win-win outcomes, mutual beneficially deals with our American counterparts to avoid tariffs and to avoid any harmful escalation that would be damaging on both sides of the Atlantic,” Gill said.

The European Union has proposed reducing both US and EU tariffs on industrial products to zero percent. Currently, the United States applies a 25% tariff on aluminum and steel imported from the EU, levies a 25% tariff on EU automobiles, and maintains a general rate of 10%.

"We have proposed reciprocal zero-tariff arrangements for industrial products, similar to what we've effectively implemented with numerous other trade allies," stated Commission President Ursula von der Leyen on Monday prior to the announcement of the 90-day suspension by the U.S.

The Commission suspended on Thursday retaliation measures on a list of US products member states adopted on Wednesday against US tariffs on aluminium and steel, keen to give negotiation with the US a chance.

On Friday, European Union Economy Commissioner Valdis Dombrovskis evaluated the effects of the trade conflict initiated by the U.S. government. He stated that according to the Commission's data, the U.S. gross domestic product could decrease between 0.8% and 1.4% through 2027. "The adverse effect on the EU would be smaller compared to the United States, approximately 0.2% of our GDP," Dombrovskis noted.

"If tariffs are seen as long-term measures or if the affected nations respond with counter-tariffs, sparking a full-blown trade war, the economic repercussions could worsen: potentially reducing U.S. growth by 3.1-3.3%, EU’s by 0.5-0.6%, and impacting world GDP by around 1.2%. Additionally, global trade might decrease by approximately 7.7% within three years," he explained.