- “Us tariffs on EU exports will easily be above €100 €100 billion and this is up from 7 billion of last year. Um, and I think we can all say that 30% is a prohibitive tariff. So exports will definitely go down significantly. And this also means markets for our companies. Now more tariffs are under way. There are currently seven investigations the so-called section 232 investigations on commercial aircraft jet engines and parts, pharmaceuticals, semiconductors, critical minerals, copper, timber and lumber. And all of this is another export volume of €538 billion. Now, um, looking at the negotiations, um, the European Commission has Is in the last weeks months engaged intensively with the United States, both at political and technical level. There have been a lot of missions to the United States. Um, and I think one can say that we were in an advanced stage of these negotiations last week, and that we have carried these negotiations out in good faith. Um, and then they came the letter on the weekend that a 30% baseline tariff will be effective from the 1st of August. And a lot of members of the European Parliament have, um, expressed themselves on this letter that this is unjustified and unproductive, and indeed it does not help finding a negotiated outcome. Now, the European Commission, of course, understands this in many ways, and I think we can share the view that this is not a nice outcome. Um, but the. We need to remain calm and united. And it's important to pursue what is best for the EU interest.”
EU-US relations · EU-US trade relations
- “Then we have now a second tariff list, um, that is being finalized. And then you are asking me what else is in the pocket. I can tell you, we look at everything. Everything, whatever, um, makes sense and does not escalate. A trade war is meaningful, is targeted. I mean, this is also a little bit, um, based on your comment, um, when you talk about the tariffs against China, of course, we do not want to increase the burden of on our companies and our and our citizens through our own measures. But then again, of course, um, to get a shorter negotiated solution not come by the 1st of August. This is a discussion that we all need to have. So a very serious discussion. Um, you were asking me for some of the figures. Um, so in terms of the 30%, I can tell you that EU companies would pay 100 €1 billion in terms of customs duties. And then in terms of, for example, the current tariffs on steel and aluminium, we had 13.7 billion. And on cars we are at 18 billion. And I just want to make sure I have the right figure. Um, overall last year EU companies paid 7 billion. So, um, yeah, this is a stark increase in terms of duty income. Um, then I just want to make sure, uh, with regard to China And our, uh, trade relationship. Um, well, I mean, if you're also a member, an inter, you know, the ongoing discussions on overcapacity for steel and aluminium.”
Trade relations with China · EU policy on custom fee on non-EU imports
- “So in terms of approach, uh, what is to be done now is can be summed up, uh, in three pillars. So first, the preference remains to have a negotiated solution until the 1st of August while preparing countermeasures. Second, to really pursue the diversification agenda with other trading partners and then, uh, doubling down on the single market and being vigilant on the risks of trade diversion. Um, maybe on the first point to continue negotiations where we prepare Countermeasures. So there are a couple of days left until the 1st of August. And I can say that both at political and technical level, um, work is progressing to try to get a deal. But I also want to be clear here on two things, um, that the EU will remain its principled positions and its red lines, and regulatory autonomy is non-negotiable. So, uh, this is, I think, also for this House, this committee, uh, really important. Now we have to, of course, prepare ourselves for what might happen after 1st of August. And here, um, at the moment, the the approach is the following. First, um, the first set of countermeasures, um, that were published on the steel and aluminium um Tariffs have been now postponed until shortly after August. Secondly, we are proceeding with our proposal for a second list of goods. You might have seen the public consultation that included an export volume from the United States to Europe of €95 billion. This has been consulted. And now the list is established to include €72 billion of US exports that would face counter tariffs.”
EU Single Market harmonisation · EU-US trade relations
- “Um, but before we go into these details, um, I just want to really recall some of the salient facts, because it's important that we understand what we're actually talking here about. And for this economic figure. So always a good pointer. So, um, yeah, a quick reminder. I don't need to emphasize this, but the United States are our most important trading partner. Um, trade flows and goods and services amount to €1.6 billion per year. Um, that makes up 70% of our worldwide trade. And we have a massive investment relationship of more than €5 trillion in the United States. Um, so it goes without saying that, uh, the current situation with regard to tariffs has a huge impact on our economy and on our single market. And, um, since March, uh, the United States has increased import duties on EU goods significantly. And, um, following Friday's developments. Um, this is the situation. So, um, the United States applies tariffs on EU exports as follows. 50% on EU imports of steel and aluminium and derivatives, 25% on EU imports of cars and car parts, and currently a 10% universal tariff on all goods imports. Um, which the US has now announced um, per a letter to our president, will increase to 30% as of the 1st of August. Um, in terms of figures, what does this mean? These tariffs basically include 70% of all our exports. Uh, that amounts to €380 billion. Um, and should a universal 30% tariff come into play, um, EU exports will easily be above 100.”
EU Single Market harmonisation · EU-US trade relations
- “They cause economic harm. There is no denial about that. Tariffs raise prices for consumers and for businesses. Tariffs hurt EU and US companies, workers, farmers, consumers. They hurt our citizens. I think we can all agree on this assessment in this room. Now what is the European Commission doing about it? I am about to summarize maybe our approach in four pillars. So first, the Commission's priority is to have a fair and balanced outcome which removes US tariffs on EU goods. As mentioned before, until the 9th of July, the US has announced that reciprocal reciprocal tariffs will be reduced to 10% and the Commission is ready to engage. You have seen statements of our president on this and negotiations are a priority, but you will also understand that given ongoing discussions, we will not be commenting on details. In the meantime, should negotiations fail until the 9th of July, the Commission wants to be ready with rebalancing countermeasures to the current tariffs imposed on EU goods. The first set of countermeasures on potential EU tariffs on US goods exported to the EU were suspended after the announcement of the 90 days delay of reciprocal tariffs. So why the United States still has tariffs on all goods of 10% and 25%, on aluminium and steel and cars and car parts? The European Union has suspended any measures you might have seen in the mode of preparation to be ready that on Thursday last week, the commission opened a public consultation on additional countermeasures.”
Free trade agreements (FTAs) · EU-US trade relations · EU policy on custom fee on non-EU imports
- “That is 70% of all EU exports to the United States. As you probably have read and know, the United States have imposed universal tariffs at 10% that currently apply to €286 billion of EU goods until the 9th of July. Normally, after this, this tariff is to increase to 20%. In addition, 25% tariffs are levied on EU exports of steel and aluminium products and certain derivative products. This amounts to circa €26 billion of EU steel and aluminium goods to the United States, and 25% tariffs are levied on EU exports on cars and car parts. The trade volume here is circa €67 billion. And in addition, the United States government has launched, as of today, seven so-called section 232 investigations on national security grounds, on lumber, on pharmaceuticals, semiconductors, critical minerals, trucks and trucks, parts, and now recently also on aircraft, jet engines and engine parts. So if these sectors are also to be levied by additional tariffs, we're speaking about 97% of EU goods exported to the US that would be faced with additional charges for the United States. This means that their federal income from customs duties were to increase from €7 billion in duties on EU exports to circa €100 Billion euros. So much about the facts. So now where are we today? How do we see the situation? You've heard the president of the European Commission and also Commissioner Sefcovic, and several statements. The Commission regrets the decision of the United States. The Commission sees them as unjustified.”
Carbon Border Adjustment Mechanism (CBAM) · EU-US trade relations
- “And this public consultation is open for all stakeholders until the 10th of June 2025. Now. These countermeasures include products that we import from the United States in the order of €95 billion. And also, we have included possible export restrictions on goods that the EU exports to the United States in the order of €4.4 billion. So negotiation, but also being ready should negotiations fail. The second strand of approach has to be diversification with EU trading partners. The European Union has today 76 trade agreements with countries across the globe. No other regions have so many trade agreements. And while the why the United States represents 13% of EU trade. There is still 87% of global trade that we have to capitalize on. So you can imagine the European Commission is putting all its efforts in ongoing free trade agreement negotiations with India, with Indonesia. We have ongoing negotiations with Malaysia, Thailand, the Philippines, Mercosur and Mexico are under adoption. And then you also saw the announcement that there will be new launch discussions with United Arab Emirates. The third pillar of action is that we really have to monitor the impact of the U.S. tariffs on the single market. And in terms of trade diversion to the single market, it is to be expected that global import flows will increase and the Commission needs to be able to act if need be. This means that we have to deploy and be ready to adapt our industrial policy toolbox and, if need be deployed, trade defence instruments to protect our EU companies in the single market, which will be facing increased pressure.”
Free trade agreements (FTAs) · EU Single Market harmonisation · EU-US trade relations
- “I can I can quickly start. Ah. Um. I will focus more on the single market perspective, and my colleague Mathias Jorgensen will then try to address all the trade elements.”
EU Single Market harmonisation
- “First was just what Stella said about the internal market. I said this in my introduction. This is one of the four strands that the commission is really actively following. The 21st of May, the internal market strategy will come forward. Mr. Sacconi, executive vice president, made it clear at the weekend And the journal that the internal market will be restructured. And of course, we're talking about europeanising before globalizing. And Mr. Niebla mentioned this too. Currently this is the narrative US or China. But we shouldn't forget that the SMEs often don't have a choice in the matter. They don't have the capital reserves. They don't have the option. And so we therefore need to strengthen the internal market. And our big challenge the steel and metals action plan, the automotive action plan. There are many good initiatives that are being developed and they need to be implemented. We're all in the same boat here. The, the commission, the parliament, the council. We need to move forwards.”
State Aid · EU Single Market harmonisation
- “Um, so, uh, I think, um, our president had said, um, you know, that we need to. Yeah, I mean, that we need to continue our trade relationship, um, but not be naive and that neither. Now, um, maybe to the first point, uh, you were complaining or you were referring to, um, some industry statements, um, on our EU regulation. I mean, I can only say this is a democratic approach. Um, these laws have been adopted in a democratic process and, um, hopefully reflect also the views of our citizens. Um, This is what I have noted so far, but if you have any further comments, I'm at disposal. Perfect. So if there's more questions, we can probably go bilateral afterwards. But thank you so much for coming to our committee and also debriefing us from the single market side, because of course it's a trade issue, but it will affect the single market. We have been discussing our digital, uh, regulation several times here. So keep the red line. And I think no one of us envies the commission at the moment to negotiate. It's definitely not easy. But again, full support of this House. But you heard our concerns and hopefully we'll take them with you. Thank you so much. This concludes agenda item 19. If there's not any other business I can just let you know. And, uh, I think you have also received it by email. The meeting of the 1st of September is cancelled, and the next meeting is on the 24th and 25th of September.”
EU Single Market harmonisation · EU rules on digital competition
- “Many thanks, Mister Chair. And good morning to everybody. Thank you for having the commission today here. Um, and we're happy to give an update on the situation of the impact of the US tariffs on European industry. I think before going into the details, it's important to To clarify what we are talking about and present some figures. The European Union and the United States have a long standing economic partnership. Over the last decades, the European Union and the United States have built a trading space that has surpassed €1.7 trillion in goods and services. Trade. In the area of goods, the trading volume amounts to €850 billion and the area of services we are trading €746 billion per year. In the area of goods, the EU holds a trade surplus circa €160 billion. In the area of services, the United States holds a trade surplus roughly €110 billion. It is also important to note that European companies are the biggest foreign investor in the United States. We're talking about €2.7 trillion in 2022. And they employ 3.4 million people in the United States. In short, we are each other's most important trading partners. The EU for the US and the US for the EU. Today we are here because this important trade relationship is facing headwinds. The United States have increased its import duties on EU goods significantly. So again, a couple of figures. What is the situation overall EU exports in the magnitude of €379 billion to the United States are affected by increased tariffs.”
EU-US relations · EU-US trade relations
- “And last, the president called the doubling down on the single market the best solution is to be strong in Europe. So I think the notion of competitiveness has been very strong since the beginning of the mandate of the second mandate of president von der Leyen, and we have launched many initiatives. The competitive can't pass the clean industrial deal, the Automotive Action plan the steel and metals action plan. There is the ongoing simplification agenda. And of course, on the 21st of May, the European Commission will present the single market strategy. So it is obvious that one of the responses to a globally volatile situation is to focus on strengthening EU industries. Eu competitiveness and making a convincing case for choosing Europe. Over the weekend, Commission Executive vice president Stéphane Séjourné published some op eds which make the case for choosing Europe. He outlines that Europe represents a unique model linked to democracy democratic values. The European Union is a foreseeable and predictable Economic space. We believe this is important when you make investment decisions. Europe is home to incredible talent. The EU single market is a €17 trillion marketplace with over 450 million consumers, and we know we must do better. And the single market strategy will respond to that. But we also believe that there is a strong case to choose Europe. So these would be our introductory remarks. Thank you very much.”
EU Single Market harmonisation · Competitiveness matrix
- “Also on the impact on the single market. I mentioned it also before. Um, we're actually having a task force to monitor the impact on the single market in terms of increased, uh, trade diversion and import flows to the European Union. This also includes Nearshoring. We are aware that, um, a lot of companies or a lot of companies not from the EU are looking at existing trade agreements with the European Union to locate production closer to the European Union, to then benefit from a favourable trading regime. So this is a big piece of work that we need to do. We hope we will have the first data here. And as I said before as well, the European Commission will then really look at its toolbox and able to be able to react. I also heard from some of the interventions, research, development and innovation and skills. You will have probably seen the summit of President Macron to which president von der Leyen participated. This is part of our strategy to reinforce our, yeah, our attractiveness also to get more researchers and academics now to the European Union, um, and to have that leap forward. And then we took note of, um, the comments on digital services, on data flow. I'm not in a position now to comment on this, but this has been taken on board. Thank you very much.”
EU Single Market harmonisation
- “Okay. I will try to, um, to really reply to all the comments that I heard. So, um, my maybe my, my first response to regulatory autonomy and basically MFF. I mean, here I can I don't know what the DMA situation is, but having seen the negotiations and having seen some of the draft documents, I can absolutely reassure you. These red lines from our side have been guarded to the max. Um, so you will. Whatever you know has been discussed there will not touch our regulatory autonomy. So, um, that I can say as a first point, on the second point, um, I mean, the European Commission is going to present its MFF proposal tomorrow. So I cannot prejudge what is going to be in there. You will see tomorrow what the college will adopt. Um, so I cannot speculate on a digital charge or not. Um, I, we hear you on and I think this has been the position of many, um, members of the European Parliament that we have also seen the press that you would like to see us, uh, invoking some of the countermeasures. Um, so for the moment, uh, this is delayed until the beginning of August, but, um, here as well, preparation is in full speed. So I repeat again, we have, um, a first tariff list on steel and aluminium.”
EU rules on digital competition · EU policy on custom fee on non-EU imports
- “At the same time, um, there was work on export restrictions on steel and aluminium scrap. I think this committee also knows very well the steel and metals action plan. So, you know about the problem of scrap and the European Union. And then within the European Commission, we are also working on additional potential countermeasures which go beyond goods so that we are ready, should a negotiated solution not be in place on the 1st of August? As regards diversification of trading partners, you will have seen on Sunday that there was a political agreement with the Indonesian president between president von der Leyen and Indonesian President. So for after the summer, it is foreseen to conclude that FTA and then also negotiations with India, Thailand, the Philippines, um, United Arab Emirates and then also Australia are really going very strongly ahead. One point that is important is that we safeguard our single market in all of this. Um, I think one can say that the global trading situation is not what it used to be. And, um, that there's a lot of insecurity at the moment and global trading flows and that we need to make sure that we protect our single market if need be. Um, there is an import surveillance task force in place since April, and, um, this is really a monitoring mechanism to flag any concerning surges. So we're looking at increasing import flows and increasing prices. And you can find now on the European Commission website a dashboard which gives you um, some of the sectors and some of the countries from where the imports come.”
Free trade agreements (FTAs) · EU Single Market harmonisation · EU policy on custom fee on non-EU imports