The top EU negotiator said Brussels hopes to increase purchases of U.S. goods by 50 billion euros to resolve “problems” in the trade relations, adding that the group is making “some progress” to reach an agreement.
However, EU Trade Commissioner Maroššefčovič in an interview with the Financial Times suggested that the group would not accept a 10% tariff on goods from Washington as a fair trade negotiation solution.
In early July, steep tariffs will be imposed on the EU and several countries, which has allowed EU racing to avoid the full range of the transatlantic trade war.
Sevkovic said the U.S. and the EU have made progress through multiple rounds of face-to-face and telephone negotiations, which has 20% tariffs on the group, since President Donald Trump imposed a pause. He added that "his ambition" is still striving for a "balanced, fair" deal with the White House.
šefčovič said the key arguments he made to U.S. Trade Representative Jamison Greer and Commerce Secretary Howard Lutnick are taking into account exports of U.S. services to the EU, which will put Europe's overall trade deficit at just €50 billion.
He said this could be quickly ended with the deal to buy more U.S. natural gas and agricultural products.
"If the issue we consider in the deficit is €5 billion, I believe we can quickly solve this problem by buying LNG, with some agricultural products like soybeans or other areas," Sefcovic said.
"It's important that I think we know each other better, what are their locations? Where are they from? And I think they know us better," he added. "I think we know more about these numbers."
But he warned that it was “very difficult” to reach a deal “a clear acceptable deal for our member states and the European Parliament”.
Trump imposed a minimum additional tariff of 10% on almost all countries on April 2, while also putting additional "countdown" responsibilities for certain trading partners, including 20% of the EU. Trump then suspended additional "reciprocity" measures, allowing partners to negotiate for 90 days.
Sevkovic said Trump’s comprehensive tax on the EU’s threatening EU is “astronomical…we clearly conveyed this to us: ‘It’s unfair, it’s unfair.”
When asked if he would accept a 10% tax as in trade negotiations, the EU said the EU considered it "a high level", which suggests that the group will not reach a deal that keeps the tariffs at that level.
Since announcing the loss of global stock markets and reaching tariff rafts of U.S. dollar and U.S. borrowing costs, Trump has weakened these measures to provide goods to industries such as the automotive industry.
"I see there are some adjustments or corrections," Šefčovič said. "I'm sure I'm not the only one pointing out some potential negative consequences."
Trump's "reciprocity" to the EU is 20% tax on the EU and 25% sector tariffs on EU steel, aluminum and automobiles, which still exist.
In return for a partial probation, the EU suspended retaliatory tariffs on 2.1 billion euros of U.S. goods, including Harley-Davidson motorcycles, poultry and clothing until July 14.
The European Commission negotiates trade measures on behalf of 27 EU member states. All capitals “want us to negotiate” but if there is no deal, they are ready to support further retaliation.
The committee privately profiled member states on Wednesday night in areas where incentives may be provided to the United States, and also provided new tariff preparations for the United States.
"It's not easy, but we will work carefully with each member state to get a strong response and that will be consistently supported," said Šefčovič.
The experienced Slovakian commissioner said he has been in contact with negotiators in other countries and he has also tried to reach a deal with Trump, and he said the EU is also willing to work with the United States to help address the impact of China's export growth as a dessert for the trade deal.
"We think we can actually achieve a lot together, especially the excess of steel and aluminum that we work together on semiconductors, overcoming our dependence on key feedstocks," he said.