The European Commission confirmed on Thursday that it held discussions with the United States through a phone call last week. This is the first informal talk held between the two sides after the U.S. slapped tariffs on EU goods earlier this month.
In an emailed statement to CNBC, Brussels revealed that talks were held over the phone in a bid to quietly resolve trade issues. An official briefed on the matter but spoke on condition of anonymity revealed that U.S. trade representative Robert Lighthizer and European Union Commissioner Cecilia Malstrom had the call.
The official further revealed that while there was "no breakthrough" in the discussions, the phone call was a good start in resolving trade tensions between the two countries. "We still want to find a negotiated solution," the official clarified.
Tensions started after the White House announced tax duties on $7.5 billion European products earlier this month. The issue stemmed from U.S. complaints regarding European member countries allegedly providing unfair subsidies to Europe-born jet maker, Airbus.
The complaints were forwarded to the World Trade Organization (WTO) and in a move predicted by some experts, the WTO ruled in favor of the American government. It is also worth noting that Washington claimed the subsidies allegedly provided for Airbus were resulting in losses to U.S. aircraft giant Boeing.
BBC reported shortly after the tariffs took effect on October 17 that buyers from the U.S. and European suppliers alike were concerned about how the tax duties will affect their business ties.
Among the products included in the list with a 25 percent tariff are different types of cheeses including Dutch Edam, British Stilton, and Italian Pecorino. The timing of tariffs came amid increasing demand for European cheeses in the U.S. market.
Aside from cheeses, U.S. tariffs have also been slapped on wine produced in some key European member nations - except Italy. The countries that will be tariffed are the United Kingdom, Germany, Spain, and France.
Several fashion products have also been hit with the tariffs, including tailored suits and cashmere jumpers, while some of the biggest concerns have come from Spanish olive growers.
Spanish olive oil has been hit with the tax duties and for some olive growers, it is unreasonable that olive farmers are forced to pay for the consequences of an agreement between the government and Airbus.
Shortly after the tariffs were announced, European luxury goods shares tumbled, Reuters reported. It is expected that thousands of jobs will be affected if the tariffs continue and should the EU also slap additional tariffs once the WTO decides on its Boeing-related complaints.
