The European Union, however, retains the option of retaliating against the U.S. trade war.

On Wednesday, European Commission President Ursula von der Leyen stated that the European Union is pushing for a framework of trade agreement in principle with the United States while retaining the options to retaliate.

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“We are looking for a reliable framework — from which we can keep building our common trade,” she told the European Parliament during a plenary session in Strasbourg, France.

While reaffirming the EU’s adherence to its principles and readiness for “all scenarios,” von der Leyen said the 27-nation bloc favored a negotiated settlement.

A Commission spokesperson echoed von der Leyen’s remarks, adding that an agreement in principle could be reached in the coming days. “We’re working hard to get an agreement in principle with the U.S., and that is where our focus is at this point,” the spokesperson said.

On Tuesday, U.S. President Donald Trump said that he would “probably” send a letter to the EU within two days, adding: “A letter means a deal.” “They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” he said.

Trump also escalated trade tensions by threatening tariffs of up to 200 percent on foreign pharmaceuticals and 50 percent on copper. Medical and pharmaceutical products, as well as medicaments have been among the bloc’s top exports to the United States over the past two years.

EU trade chief Maros Sefcovic told lawmakers that Brussels and Washington had made “good progress” on the text of a joint statement or agreement in principle.

“I hope to reach a satisfactory conclusion, potentially even in the coming days,” Sefcovic said. However, he emphasized that EU legislation and regulatory autonomy remain “red lines” and are “non-negotiable” in the talks.

Bernd Lange, chair of the European Parliament’s trade committee, said the EU continues to face “illegal and unjustified” U.S. tariffs, referring to the 50 percent duties on steel and aluminum, and the 25 percent on cars and auto parts.

“Of course, we are not really accepting this,” Lange told reporters in Strasbourg, adding that two key issues remain unresolved: Washington has yet to commit to significantly cutting existing tariffs or refraining from new ones.

Lange warned that the EU is prepared to retaliate, with a first package of countermeasures set to take effect on July 14 if no agreement is reached. Regarding Trump’s letter, Lange said the EU had not received any correspondence so far and had “no clue” about its contents.

teleSUR/JF

Source: Xinhua

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