U.S. Trade Advisor Calls on EU to Abandon 19% VAT in Trade Talks

White House trade advisor Peter Navarro has called on the European Union to reduce non-tariff barriers, including value-added tax, as part of ongoing trade negotiations. Navarro, speaking in an interview, described the EU's proposal to cut tariffs as a "good small start," but emphasized that the larger issue lies in non-tariff barriers, which he referred to as "cheating." He specifically mentioned the EU's 19% value-added tax, urging the bloc to abandon it. Navarro's comments reflect the administration's strategy to achieve more balanced and fair trade relationships. He also noted that any country seeking to engage in dialogue with the U.S. should be prepared to discuss lowering their non-tariff barriers. This stance underscores the administration's focus on addressing what it perceives as unfair trade practices beyond just tariffs.

Navarro's remarks come as the U.S. continues to push for broader reforms in global trade policies, aiming to level the playing field for American businesses and workers. The administration's approach highlights the importance of tackling non-tariff barriers, which can often be more detrimental to trade than tariffs themselves. By calling out specific practices like value-added tax, Navarro is sending a clear message to the EU and other trading partners about the need for comprehensive reforms. The administration's strategy is part of a broader effort to ensure that trade agreements are fair and mutually beneficial, rather than one-sided. Navarro's comments also serve as a reminder that the U.S. is not backing down from its stance on trade, despite ongoing negotiations and potential challenges. The administration remains committed to pursuing policies that protect American interests and promote fair trade practices globally.

Navarro, a key architect of President Trump's tariff offensive, highlighted that non-tariff barriers are a significant issue in U.S. trade with many countries, including Vietnam. He noted that while the EU is willing to negotiate a reduction in tariffs, the real challenge lies in addressing non-tariff barriers, which include food safety regulations. Navarro urged the EU to be transparent about its plans to reduce these barriers, stating, "When you announce these messages, you will be very careful to tell us that you will reduce non-tariff barriers." He also emphasized the importance of respecting World Trade Organization (WTO) decisions, allowing the U.S. to sell its pork, corn, and beef in EU countries.

Navarro's comments reflect the administration's broader strategy of addressing trade imbalances and unfair practices. He defended the White House's method of calculating tariffs on Vietnamese and EU goods, stating that it is "completely reasonable," despite criticism from economists. This approach underscores the administration's commitment to ensuring that trade agreements are fair and beneficial for all parties involved. Navarro's remarks also highlight the administration's focus on addressing non-tariff barriers, which can often be more detrimental to trade than tariffs themselves. By calling out specific practices like value-added tax, Navarro is sending a clear message to the EU and other trading partners about the need for comprehensive reforms. The administration's strategy is part of a broader effort to ensure that trade agreements are fair and mutually beneficial, rather than one-sided. Navarro's comments also serve as a reminder that the U.S. is not backing down from its stance on trade, despite ongoing negotiations and potential challenges. The administration remains committed to pursuing policies that protect American interests and promote fair trade practices globally.