MNI BRIEF: EU-US Framework Deal To Expose EU Cars, Steel-EP

An imminent framework trade deal with the U.S. would still leave the EU's main exports sectors hurting until a final agreement is done., the chair of the European Parliament's Trade Committee Bernd Lange said on Wednesday.

Lange told reporters that he expects an agreement in principle in the coming days with a baseline tariff of 10% on most of EU exports, but he stressed the need to get a reduction of higher sectoral tariffs on cars and steel, particularly given recent dollar weakness. 

"The extension of baseline tariffs is not a pause. Ten percent is not the main problem. As the dollar loses value the main problem remains the sectoral tariffs on steel and cars and of course now we have the threat of 50% on copper and on pharmaceuticals," 

Lange said that he thought a framework deal could come with exemptions for aircraft, aircraft parts and maybe spirits. (See MNI: EU-US Deal Hinges On Rule Exemptions Vs Market Access)