EU says $1.4 trillion spending pledge to US ‘in no way binding'
'The commitments… we have transmitted to the US administration [are] aggregate intentions as regards energy spending and as regards investment in the US economy by EU companies,' Commission spokesperson Olof Gill told reporters on Thursday, adding that they are "in no way binding."
"The Commission does not have the power and would never seek the power to try to enforce something like that, but they are faithfully transmitted intentions,' he added.
His remarks came two days after US President Donald Trump threatened to hit the EU with a 35% tariff if the bloc failed to deliver on its commitment to invest $600 billion in US infrastructure over the next three and a half years of Trump's presidential term.
The investment pledge is a central pillar of the EU-US deal clinched two weeks ago between Trump and European Commission President Ursula von der Leyen. The agreement also includes a separate EU commitment to purchase $750 billion worth of US energy until 2028.
'They gave us $600 billion that we can invest in anything we want,' he said on Tuesday. 'I can do anything I want with it. And the purpose was, they've been, you know, ripping us for so many years that it's time that they pay up, and they have to pay up.'
Gill's comments came on the same day that the 15% blanket levy agreed by the EU and the US in the so-called 'framework agreement' came into force.
Most EU exports to the US were previously subject to a 10% minimum duty, on top of an average 4.8% levy agreed before Trump's return to the White House in January. The new 15% levy – which EU officials describe as a 'ceiling' – includes the 4.8% rate.
However, US tariffs on EU cars and car parts remain subject to a special tariff totalling 27.5%, despite both sides indicating those products would be covered by the 15% levy.
Gill said he was unable to give a 'timeline' for when that higher car tariff would be lowered.
'We have a clear commitment from the US that our 15% across the board tariff ceiling will also capture EU exports of cars and car parts, pharmaceuticals, and semiconductors, and we look forward to that being implemented ASAP,' he said.
Eddy Wax and Nikolaus J. Kurmayer contributed reporting.
(de)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euractiv
22 minutes ago
- Euractiv
Germany suspends some weapon exports to Israel in response to Gaza decision
BERLIN – The German government suspended exports of all weapons that may be deployed by Israel in the Gaza Strip over the country's decision to extend its military operation in the region. Israel's security cabinet had greenlighted an operation to take control of the city of Gaza. Prime Minister Benjamin Netanyahu had earlier stated that Israel would seek to occupy the entire territory. Three-quarters of the Palestinian enclave are said to be already under Israeli control. In light of the decision, Germany found it "increasingly difficult to see" how Israel's approach was still serving goals like self-defence against Hamas and the release of the hostages it took, Chancellor Friedrich Merz said in a statement on Friday. "Under these circumstances, the German government will not approve any exports of military equipment that could be used in the Gaza Strip until further notice," he added. Merz also urged Israel to "continue to improve the humanitarian situation in Gaza in a comprehensive and sustainable manner", while noting that some "positive steps" had been taken after European countries increased the pressure. The development marks the first time that the German government has officially imposed sanctions on Israel since the start of the country's military operation in the Palestinian-controlled Gaza Strip in October 2023. Berlin had previously taken a cautious approach on the matter, grounded in Germany's historical responsibility for the Holocaust. The government refused to support sanctions at the EU level, including the suspension of the EU-Israel Association Agreement. Rumours that the previous German government had made weapons exports conditional on assurances from Israel that they would not be deployed in violation of international law were never officially confirmed. Germany is the second-largest supplier of major weapons to Israel, behind the US. According to the Stockholm International Peace Research Institute (SIPRI), it accounted for a third of all of Israel's major weapons imports between 2020 and 2024.
Euractiv
22 minutes ago
- Euractiv
German digital minister attacks AI Act, defends gigafactories
Germany's digital minister, Karsten Wildberger, has attacked the EU's AI Act as overly complex and bureaucratic, while heaping praise on the Commission's plan to spend billions setting up massive AI training hubs known as gigafactories. Wildberger made the remarks in an interview with German publication Tagesspiegel in which he also vowed to 'try everything' to make the AI Act more "innovation friendly" once the Commission's digital simplification track kicks off in the autumn. 'It's overloaded and too complex,' he complained of the EU law, adding: 'Of course risks have to be addressed, but the implementation is extremely bureaucratic.' Wildberger, a former electronics retail manager, became Germany's first digital minister in the coalition government led by Friedrich Merz this May. The minister also defended the EU's planned 'AI gigafactories' against criticism from the bosses of German giants, SAP and Siemens, who have suggested the facilities are unnecessary. 'If we can't find a way to use a data centre with 100,000 high-end AI chips, then I don't know what do anymore,' said Wildberger. Siemens and SAP are world-class companies, he said – but pointed out that decisive innovation most often comes from startups. He also said that Germany needs to become more active at the European level. (nl)
Euractiv
2 hours ago
- Euractiv
Trump to host Armenia, Azerbaijan for historic ‘Peace Signing'
US President Donald Trump will host the leaders of sworn enemies Armenia and Azerbaijan on Friday, touting the prospect of sealing a long-sought peace deal between the two regional rivals after decades of conflict. Armenian Prime Minister Nikol Pashinyan and Azerbaijan President Ilham Aliyev will attend a "Peace Signing Ceremony" at the White House, Trump posted Thursday on his Truth Social platform. The latest US diplomatic push comes a day after Cambodia's prime minister announced he had nominated Trump for a Nobel Peace Prize. Trump has repeatedly praised his own diplomatic efforts, saying he deserves the prize, while also voicing frustration about the ongoing Russia-Ukraine war and the hunger plaguing Gaza during Israel's offensive. Peace has also been elusive for Armenia and Azerbaijan. Sworn enemies for decades, the two former Soviet republics went to war twice over the disputed Karabakh region, which Azerbaijan recaptured from Armenian forces in a lightning 2023 offensive, sparking the exodus of more than 100,000 ethnic Armenians. The two countries have held talks aimed at securing a peaceful resolution, including last month in the United Arab Emirates, but a breakthrough has proved elusive. "These two Nations have been at War for many years, resulting in the deaths of thousands of people," Trump wrote. "Many Leaders have tried to end the War, with no success, until now, thanks to 'TRUMP.' My Administration has been engaged with both sides for quite some time," he added, saying he was "very proud of these courageous Leaders for doing the right thing." Friday "will be a Historic Day for Armenia, Azerbaijan, the United States, and, THE WORLD," Trump said. Trump, a billionaire business tycoon, also said that Washington will sign bilateral deals with both countries "to pursue Economic opportunities together, so we can fully unlock the potential of the South Caucasus Region." ExxonMobil deal struck One major agreement was already inked in Washington on Thursday, when Aliyev and Trump's special envoy Steve Witkoff were present for a memorandum of cooperation signed between ExxonMobil and Azerbaijan's state energy company SOCAR. Aliyev and Witkoff then sat down for talks, the Azerbaijan president posted on X. The former Soviet republics had agreed on the text of a comprehensive peace deal in March. But Azerbaijan has since outlined a host of demands – including amendments to Armenia's constitution to drop territorial claims for Karabakh – before signing the document. It was not immediately clear Thursday whether those demands have been met. And while Trump said his administration "has been engaged with both sides for quite some time," he did not provide specifics on the document that will be signed by representatives of the two countries. In early July, Pashinyan and Aliyev met for the latest round of peace talks in the United Arab Emirates, but they failed to yield a breakthrough. The two foes had previously met on the sidelines of the European Political Community summit in Albania in May. At the time, French President Emmanuel Macron and European Council President António Costa called for a prompt signature of a peace agreement between the two countries. A deal to normalize ties would be a major breakthrough in a region where Russia, the European Union, the United States and Turkey all jostle for influence. (vib)
