EU press release on the US reciprocal tariff policy
EU press release on the US reciprocal tariff policy
On the 18th of February 2025, the EU issued a press release titled “Questions and Answers on the US reciprocal tariff policy” which highlights key points in relation to EU-US trade relations.
The remarks clarify the balance of trade between the EU and the US, the realities of VAT and EU average tariff rates.
Further tariff remarks
On the 18th of February 2025, following the signing of executive orders at Mar-a-Lago, Trump held a press conference, during which a number of remarks in relation to upcoming trade policies were made:
- Automotive tariff will be announced on April 2nd, “it will be in the neighbourhood of 25%”.
- Semiconductor and pharmaceutical tariff will be “25% and higher”, in addition “it will go very substantially higher over the course of a year” to give those industries time to move back to the US.
Dialogue begins
On the 19th of February 2025, EU trade chief Maroš Šefčovič went ‘in peace’ to Washington in a bid to avoid a transatlantic tariff war. The EU trade commissioner met with Mr Kevin Hassett, Director of the National Economic Council, Mr Howard Lutnick, Secretary of Commerce (designate) of the US, and Mr Jamieson Greer, US Trade Representative (designate).During the meeting, EU VAT, average tariff rates and unfair treatment of EU imports in the US were discussed.
FII Summit, Miami FL
On the 19th of February 2025, Trump reiterated his trade agenda, listing cars, semiconductors, pharmaceuticals and lumber as industries to be targeted.EU VAT was described as a “non-monetary tariff”, making it impossible to sell US cars in Europe.