French Industry Minister Marc Ferracci said agreeing to 10% tariffs on European exports to the US would be a bad deal, signaling disapproval of a potential compromise with Washington.
The European Union has until July 9 to clinch a trade arrangement with Donald Trump before tariffs on nearly all exports to the US jump to 50%. Some members of the bloc are willing to accept a deal that includes keeping a 10% universal tariff on many of the bloc’s exports, but with lower rates in certain sectors, Bloomberg reported earlier.
“Ten percent is not a good deal and we all should find a way to get back to the former situation by negotiating with the US and the US administration,” Ferracci said in an interview with Bloomberg Television on the sidelines of the Rencontres Economiques conference in Aix-en-Provence. “To achieve this goal we need to stay united and be very firm in our answer and really to take into account the actual impact of the tariffs on value chains.”
The EU is pushing for the US to commit to lower rates than the universal 10% tariff on key sectors such as pharmaceuticals, alcohol, semiconductors and commercial aircraft.
Brussels is also pushing the US for quotas and exemptions to effectively lower Washington’s 25% tariff on automobiles and car parts as well as its 50% tariff on steel and aluminum, Bloomberg reported earlier.
The French minister gave the example of the aeronautical sector where value chains are deeply integrated with no tariffs.
“A 10% tariff for this industry would be a nightmare,” he said.