EU Stands Firm on VAT Amid U.S. Trade Tensions

EU Trade Commissioner Maros Sefcovic reaffirmed the European Union's commitment to maintaining its VAT system, essential for member state income, amidst tensions with the U.S. The EU prepares countermeasures if ongoing negotiations with the Trump administration, regarding new tariffs on imported goods, fail to reach a resolution.

The European Union has declared it will not alter its value-added tax (VAT) framework, according to EU Trade Commissioner Maros Sefcovic. The VAT structure remains a crucial revenue stream for member states, despite criticism from the U.S. administration under President Donald Trump, which views it as a trade impediment.

Sefcovic voiced concerns about the lack of progress in trade negotiations with the U.S., following the Trump administration's announcement of extensive tariffs on imported goods. The EU is prepared to implement its own countermeasures should negotiations falter. These measures are scheduled to commence on April 15, and their implementation will not be deferred.

This firm stance by the EU underscores a growing trade rift between the transatlantic partners, as discussions continue amidst significant economic implications.

(With inputs from agencies.)