\n\n“Negotiators from Brussels and Washington are scrambling to solve a five-year dispute over steel and aluminum dating back to former U.S. President Donald Trump’s decision to slap tariffs on European imports. They have until October to get a deal but are still so far apart that European officials now fear the chances of an agreement are slim. <\/p>\n\n\n\n
Without a deal, both sides could reimpose billions of dollars worth of trade tariffs on each other\u2019s goods \u2014 potentially spreading well beyond steel to hit products including French wines, U.S. rum, vodka and denim jeans.”<\/p>\n\n\n\n
…<\/p>\n\n\n\n
“Officials in Brussels see the ongoing negotiations as just another push from the U.S. to force them into taking a harder line against China. \u201cThe language just seems written to tackle one country specifically,\u201d said one of the European officials.<\/p>\n\n\n\n
Discussions only recently picked up pace through the exchange of a U.S. concept paper and then an EU response. Those texts showed how far apart the two sides are on key issues, the officials said.<\/p>\n\n\n\n
Washington wants to impose tariffs on imported steel or aluminum products, which would increase progressively based on how carbon-intensive the manufacturing process is, according to the proposal seen by POLITICO. Countries that join the agreement, which would be open to nations outside the EU, would face lower tariffs, or none at all, compared to those that do not.<\/p>\n\n\n\n
The EU\u2019s response \u2014 also seen by POLITICO \u2014 does not include any form of tariffs, according to the officials. Brussels fears the American plan for tariffs goes against the rules of the World Trade Organization, which is a no-go <\/a>for the EU.<\/p>\n\n\n\n But a senior Biden administration official, who spoke on the condition of anonymity to discuss ongoing negotiations, told POLITICO that tariffs should not be off the table. <\/p>\n\n\n\n \u201cThat’s a pretty powerful tool for driving the market both to reduce carbon intensity as well as to reset the playing field to counteract non-market practices and excess capacity,\u201d the U.S. official said. \u201cWhat we’ve been trying to understand and respond to, in part, is what are those reasons that the EU has to have concerns about a tariff-type structure.\u201d”<\/p>\n\n\n\n …<\/p>\n\n\n\n “Several officials said Washington is also seeking an exemption from the EU\u2019s carbon border tax, which imposes a tax on some imported goods to make sure European businesses are not undercut by cheaper products made in countries with weaker environmental rules.<\/p>\n\n\n\n Such an exemption for the U.S. is another no-go for Brussels. A European Commission spokesperson said giving the U.S. a pass on the carbon border tax would constitute a breach of WTO rules and \u201ccannot be compared with\u201d the U.S. steel and aluminum measures.”<\/p>\n\n\n\n