Washington evaluates a halving of duties on the EU. Beijing observes, Brussels looks for a balance. Geopolitics affects understanding.
It approaches August 1st: date on which they will enter into force The duties threatened by Donald Trump. And, as far as the EU is concerned, a shy reassurance would seem to register. According to reports from the Financial Times, the American president would be willing to reduce the rates, reserved for Brussels, from 30% to 15%. Trump could also agree on exemptions in relation to some specific sectors. According to European diplomatic sources, the affected sectors could be the pharmaceutical, the agricultural and the aeronautical one. However, you have to go with lead feet. The same White House yesterday made it known that these rumors are only “speculation”. It is therefore not at all said that the ongoing negotiations will necessarily lead to this landing.
Geopolitics and trade, inseparable combination for Trump
Yes, because, in Trump’s eyes, commercial dossiers are mainly read through the lenses of geopolitics and national security. In this sense, the American president tends to insert them in the wider picture of the Washington competition with Beijing. And this is precisely the point. Today, the head of the European Commission, Ursula von der Leyen, is located in the People’s Republic for the UE-Cina summit: a summit to which Trump will probably look at extremely with extreme attention. During the meeting, tensions emerged. “The current challenges that Europe is facing do not come from China,” said the Chinese president, Xi Jinping, and then add: “improve competitiveness cannot be based on the construction of walls and fortresses”. “‘Discepit and break the chains will only bring to isolation,” he continued. “As our cooperation has deepened, the imbalances have also intensified,” replied the von der Leyen.
Electric cars, diplomacy and negotiating strategy
On the other hand, we remember that, in recent years, the friction between Brussels and Beijing have increased mainly in the electric car sector. It is also possible that the President of the European Commission is trying to show himself more hard towards the dragon precisely in view of the Deadline negotiating with Washington. Trump, for his part, did not appreciate the fact that, in recent years, Berlin, Paris and Madrid have strengthened their economic ties with Beijing. It is also aware of the fact that the People’s Republic has been trying for months to involve Brussels in its strategy aimed at contrasting US duties. It is also in this sense, that, from a commercial point of view, the White House is trying to create a sort of “health cord” against China: it is in light of this effort that, for example, must be interpreted the economic agreements recently announced by Washington with Vietnam, Indonesia, Japan and Philippines.
Last decisive hours for the EU-USA agreement
In short, these hours could prove to be decisive for the commercial agreement between the United States and the European Union. The geopolitical aspect is crucial. The important thing is that Brussels understands him and acts accordingly.
