US President Donald Trump’s strong-arm tactics against American trading partners appeared to bear some fruit on Monday following reports that the European Union was willing to pay 10 per cent higher levies on many of its exports, after another climbdown by Canada on Sunday.
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In considering the 10 per cent increase, however, the 27-member EU bloc reportedly wanted a US commitment to reduce tariffs in return affecting pharmaceuticals, alcohol, semiconductors and commercial aircraft, Bloomberg reported on Monday.
Brussels was also pushing Washington to effectively ease sectoral US tariffs of 25 per cent import taxes on cars and car parts and 50 per cent on steel and aluminium, Bloomberg added, citing people familiar with the matter.
The apparent concession by the EU follows a decision by Canada to drop a 3 per cent digital services tax that the US president did not like.
This came after Trump announced on social media on Friday that “we are hereby terminating ALL discussions on Trade with Canada, effective immediately”.
The administration had added that it would decide without any consultation with Ottawa what forthcoming US tariff levels Canada would face.