EU: Lower Non-Tariff Barriers Key to U.S. Trade Deal, Navarro Says

Peter Navarro emphasizes the need for the European Union to lower non-tariff barriers, such as value-added taxes, to progress in tariff negotiations with the U.S. He highlights the significance of these barriers over tariffs for U.S. trade, particularly with challenges from countries like Vietnam.

White House trade adviser Peter Navarro has called on the European Union to reduce non-tariff barriers, including value-added taxes, to pave the way for a trade agreement with the United States. His remarks were directed at achieving lower tariffs on both sides.

Navarro described the EU's readiness to negotiate tariffs as a positive but initial step, emphasizing the more substantial impact of non-tariff barriers, such as food safety regulations, versus tariff rates. The context follows European Commission President Ursula von der Leyen's statement on willingness to negotiate a 'zero-for-zero' tariff pact.

Navarro urged the EU to lower VAT and comply with WTO decisions on U.S. agricultural exports, illustrating a broader issue of non-tariff barriers affecting trade with various countries like Vietnam. He defended the U.S.'s tariff methodology, despite criticism from economists.

(With inputs from agencies.)