EU willing to spend €50 billion on US products to address trade deficit
The EU is ready to spend 50 billion euros more on US products to reduce its trade deficit with the country, according to trade commissioner Maros Sefcovic. The problem could be solved "very quickly" by buying LNG or agricultural products, he said in an interview with the Financial Times.
US president Donald Trump has accused Europe of running a huge trade deficit with the US of 350 billion dollars. In reality, the deficit was 235.6 billion dollars last year, excluding services. The EU says it has a trade surplus of just 50 billion euros (about 56 billion dollars) when services are included.
The Trump administration has introduced tariffs to rebalance trade with the bloc. Additional import tariffs of 25 per cent on cars, aluminium and steel are already in place, as well as a 10 per cent tax on other products. A 20 per cent "reciprocal tariff" has been put on hold pending the outcome of negotiations between the EU and the US.
A quick resolution
EU Trade commissioner Maros Sefcovic is currently talking to US Commerce secretary Howard Lutnick about the tariffs. In an interview with the Financial Times on Thursday, Sefcovic says the deficit could be quickly resolved if trading partners included services in their statistics.
"If what we see as a problem in the deficit is €50 billion, I believe that we can really (...) solve this problem very quickly through LNG purchases, through some agricultural products like soybeans or other areas," Sefcovic told the British newspaper.
But Sefcovic added that while he was seeking a "balanced and fair" deal with the White House, reaching an agreement with EU member states and the European Parliament would be "very difficult". He also said that Europe would not accept the 10 per cent tariff as a floor for negotiations, which is "a very high level" in the eyes of the EU.
PHOTO © Jean-Christophe VERHAEGEN / AFP
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