US: Little progress on trade with EU – ABN AMRO

Aline Schuiling, senior economist at ABN AMRO, suggests that there is very little progress has been made in the trade negotiations between the EU and US and President Trump is becoming increasingly impatient.

Key Quotes

“For now, he appears to be using the threat of tariffs on imports of European cars and vehicle parts to create leverage in upcoming negotiations. Indeed, the direct and indirect damage of these tariffs to the European car industry and overall economy would be sizeable.”

“Considering that there is strong resistance in the US against tariffs on imports of cars and vehicle parts and that the US motor vehicle industry and overall economy would be hurt significantly as well, it seems unlikely that these tariffs will be imposed – and this is without considering retaliatory measures the EU would impose.”

“Still, we would not be surprised if President Trump kept the threat alive in his communication for a while.”