Trade Talks to Move Ahead with EU

Brussels last week agreed to launch trade talks with the U.S. but warned it would back out if Trump refuses to lift industrial tariffs or slaps new duties on European cars and auto parts.

The negotiating mandates emphasize that steel and aluminum tariffs must be dropped “prior to the conclusion of negotiations,” which EU ministers hope will happen before European Commission President Jean-Claude Juncker leaves office at the end of October.

Senate Finance Chairman Chuck Grassley shot back his own warning, saying that if the trade talks exclude agriculture, it’s unlikely a final agreement would be ratified by Congress.

“Agriculture is a significant piece of the global economy, and it simply doesn’t make sense to leave it out,” he said.

President Trump threatened to slap tariffs on European cars and auto part imports if the EU refuses to address agriculture in trade negotiations.

The threat came on the same day Brussels officially endorsed launching trade talks with Washington (with a warning that the EU would abandon the negotiations if Trump imposes auto tariffs).

If trade tension with Europe escalates, wine and dairy could be “soft targets” for U.S. tariffs, according to a report from the firm Fitch Solutions. The group says those are “the most exposed food and drink sectors for the EU,” with over 75 percent of U.S. wine and dairy imports coming from Europe.

Source: Politico