The EU has established a new trade framework with the United States that includes safeguard mechanisms such as suspension clauses and sunset provisions, allowing the EU to re-impose tariffs if the US fails to honor agreed-upon tariff reductions, thereby providing predictability and protection for European industry and consumers.
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‘We have other countermeasures ready’ if US disrespects EU trade deal, says top negotiator LangeAñadido:
Let's now go to Bernd Lange, because he is a top negotiator for this file.
A deal has been agreed yesterday at night. Let's go straight to to our guest in Strasbourg. And uh sir, you've had no sleep, so thank you so much for joining us. I've got to admit, I've defended you many times every time you've delayed the vote, because this is a consequential decision for Europeans. Nonetheless, I'm surprised you've now agreed to it. What changed?
First of all, it's not a deal. It's a legislation, [clears throat] and that's really important, and therefore we had to be really careful. And uh secondly, we are not really delaying the process.
The only delay we had was during the so-called Greenland exercise, where President Trump really used coercive measures against us. So, now we have uh safety net. So, we are looking for safeguard mechanisms for a monitoring system. We looking really to suspension clause, and we have also a clear sunset for the whole legislation. So, this is a package which gives a predictability and safety for us, for our consumer, for our industry. Therefore, I'm quite happy that we concluded it. Uh but sir, do you honestly believe that? Do you think you're going to have a more stable relationship with President Trump, because some would argue you've agreed to it, cuz it's factoring you to double tariffs on the cars. That's really what changed, nothing else.
Yeah, of course, we have now security, and that's so important. If And as you know, this current legal base in the United States, this Trade Act 122, is expiring on the 24th of July. And nobody knows what uh will come after. And we have now clear clear criteria that if our deal is not respected on the US side, then we will lift again the tariffs. Or secondly, as you know, the United States have really increased tariff for washing machine and other products after the deal of Scotland was concluded, and we want to bring them back. And also this has to be in our legislation. So, this gives us insurance that we can act in a proper way if there are turbulences on the other side of the Atlantic. Uh Mr. Lamy, some would say it's in fact the opposite, the safeguards have been watered down. Uh there is a clause here that argues a deal can be halted, but only after 2029.
President Trump will be gone by then. Do you really believe you have the safeguards in place so that this is a balanced deal?
I will not make any comment on the deal of Scotland. Now we have really a safety net, and yes, we have safeguards. We will have a monitoring of the economic consequences inside the European Union starting 3 months after this legislation is coming into force. And we have a lot of suspension clauses, and we have also clear regulation that if the United States will not decrease the tariffs for this metal products until the end of the year, then we will lift our tariffs for this product. And yes, we have a sunset clause, and this is really called the new. This was not foreseen. We will have an impact assessment about the whole exercise, and then we will start the negotiations after 3 years with United States. So, there is a really big package for giving us predictability.
>> Although of course the sunset clause only kicks in in 2029, 1 year after President Trump leaves office, but I have to ask you about steel and aluminum because this is very important for the European industry. What makes you think the US will agree to lower them from 50% because we have seen no movement over a year. This is very painful for the European industry.
That's not totally correct. So, we have some movement on the 2nd of April. So, I'm a motorcycle driver and motorcycles are relieved from this tariff. So, back to 50% and some other products as well, but not all of them. So, we are in contact and we give them a time until the end of the year and if then it's not happening, then we will come back to our tariff.
So, there is some room for maneuver on the US side and I hope that uh um the US administration will uh act properly. I just have to ask a final question. Uh now that you've agreed to expedite this, uh you say I hope the US will agree and comply, too.
Do you trust President Trump ultimately?
Do you honestly believe he will go through his words?
Um you will never know what uh is coming in his mind, but we have the possibility to act. So, if the conditions are not fulfilled, then we will reestablish immediately the European tariffs for US products. And this is a clear message.
Stick, President Trump, to the deal of Scotland, then of course we can act in a proper way. If you not, then we have our countermeasures ready. Uh well, Mr. Liese, thank you so much. I know you had a very short night. So, thank you.
Appreciate it for joining us this morning.
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