A senior German politician said on Sunday that the European Union and the United States could still reach a partial agreement and delay higher tariffs ahead of the August 1 deadline set by US President Donald Trump. Juergen Hardt, deputy leader of Germany's CDU/CSU bloc in the Bundestag, told Reuters the trade talks were entering a "decisive phase" and expressed optimism that a deal would be reached. "High tariffs have to be paid by American citizens and companies and lead to higher prices and inflation in the US," he warned. Trump on Saturday renewed his threat to impose a 30 per cent tariff on imports from the EU and Mexico starting August 1, escalating trade tensions after weeks of unsuccessful negotiations. A previously imposed 20 per cent tariff on EU goods in April was suspended and replaced with a 10 per cent rate for 90 days, with talks now extended to the end of July. Hardt criticised Trump's view that the US trade deficit is due to EU protectionism, noting that the US enjoys a surplus in services thanks to its IT dominance. He added, "Fewer imports mean that the USA would have to work more and harder to maintain its prosperity." Attribution: Reuters Subediting: M. S. Salama
