Duties, the EU prepares a 90 billion counter-tariff response

MILAN – Last call - assuming Donald Trump 's fickle calendar doesn't change again - for an agreement on tariffs between Europe and the US. With the July 9 deadline set by Washington as the last limit for reaching a trade agreement with the many partners who have not yet signed it now looming, French Economy Minister Eric Lombard said yesterday that he hoped an agreement could be reached over the weekend , given that a European Union delegation is in Washington with this mandate. But if this were not the case - he added - "Europe will undoubtedly have to react with greater vigor to re-establish the balance". Brussels continues to negotiate, but is also considering possible counter-tariffs on US products for around 90 billion euros.

Paris, which is one of the European countries inclined to take a harder line on the trade hostilities opened by Trump, signals however that protectionism will not remain within the American borders. Lombard in fact defines it as "essential" for the EU to protect its industries from the United States and especially from China : "In today's world we must protect our industry - he says - and we must do it in every sector; otherwise the Chinese policy of having over 50% of global production capacity in every field, will destroy our industry". Lombard also compared the USA, China and Russia to "three bullies" who attack countries that behave by the rules.

With July 9 approaching, the US position is becoming increasingly tough, probably to push its partners to an agreement. The duties that are now at 10% should double after that deadline, but Trump has not ruled out that they could reach higher levels, up to 50%, and above all he announced that he is sending a dozen letters with proposals to "take it or leave it", to as many trading partners, without specifying which ones they are.

Furthermore, in negotiations with the EU Commission, the US has floated a 17% tax on all US agri-food imports from Europe . This measure would hit hard a sector that currently sells goods worth 48 billion euros a year to the US. From the latest round of negotiations, the EU learned that the US will divide its partners into three categories: those with whom they have an agreement in principle, who will see tariffs of 10% or reduced in the future; those who will see tariffs increase to 20%; and those who, according to Washington, are not negotiating in good faith and could face higher taxes.