EU-US Trade Deal Update: Possible Tariffs to Remain on EU Exports

EU-US Trade Deal Update: Possible Tariffs to Remain on EU Exports

The European Commission is getting ready for a new trade deal with the United States. But there is a chance that the US will keep tariffs on many European exports. Matthias Jørgensen, an EU official, told members of the European Parliament (MEPs) that the US believes current tariffs help keep trade fair. He warned that if the US refuses to remove all tariffs, the EU may have to make changes to keep trade balanced.

Since March, the Trump administration has set a 25% tariff on European steel, aluminium, and cars. There is also a 10% tariff on other goods imported from the EU. These tariffs have caused tensions between the two sides and have made talks difficult.

Little Hope for Lower Tariffs, EU Officials Say

A European diplomat said the recent trade talks showed little chance that the US would lower tariffs to below 10%. Michal Baranowski, a Polish trade expert, predicted that these high tariffs would face strong opposition in the European Council, where EU member states discuss policies.

Some countries are more concerned than others. France and Germany have voiced the strongest opposition to the US tariff plan. Meanwhile, Hungary, Italy, and Ireland seem less worried about the tariffs. This split in opinion makes it harder for the EU to take a united stance.

Talks Restart With Some Progress

After several weeks of deadlock, trade negotiations between the EU and the US have started again. Maroš Šefčovič, the EU’s Trade Commissioner, called the recent talks with US Secretary Howard Lutnick “constructive.” Both sides have agreed to step up technical talks in hopes of breaking the deadlock.

Šefčovič has already traveled to the US three times to meet with American officials. He also hopes to soon meet the US Ambassador Jamieson Greer, either in Brussels or at the upcoming OECD summit. These talks aim to smooth relations and find common ground.

The EU has offered tariff-free trade on industrial goods to the US. They also want easier access to American liquefied natural gas (LNG), soybeans, and artificial intelligence technology. However, EU officials are clear that they will protect their own laws and rules.

Jørgensen assured MEPs that the EU will not compromise on its regulations. “We’ll stay flexible but will never touch EU regulatory autonomy,” said one official. This means the EU will not weaken its safety and environmental standards to make a deal.

EU Plans Strong Countermeasures if Talks Fail

If talks do not lead to the removal of tariffs, the EU is ready to respond with strong measures. It has prepared a list of US goods worth €95 billion that could face new tariffs as retaliation. Šefčovič said the EU cannot accept the current unfair situation, where 70% of its exports to the US are hit by tariffs.

The EU has started consulting with industries and national governments to decide which American goods to target. Some countries, like France, Spain, and Italy, want to protect their key products, such as wine and spirits. For example, they want to exclude Bourbon whiskey from any new tariffs to avoid harming their own alcohol exports.

These countries used a similar approach during earlier tariff disputes. At that time, the US agreed to pause retaliation for 90 days. However, the threat of new tariffs has raised tensions again.

Aerospace Industry Under Close Watch

The aircraft industry is one of the most sensitive areas in the trade dispute. Boeing, the major US aircraft maker, is now under close examination by the EU. Airbus, the leading European aircraft manufacturer, could also be hit by US measures.

EU officials fear that the US might escalate tensions if the aviation sector becomes a key battleground. This would risk damaging an important global industry and worsen trade relations.

Wider Impact of Trade Tensions

The ongoing tariff conflict is not just about steel or cars. It affects many sectors and raises costs for businesses and consumers. The EU is trying to protect its interests without harming its own markets or breaking its rules.

Trade experts warn that these tensions could last for years if no agreement is reached. Both sides stand to lose if tariffs remain in place or increase. Companies may delay investments, and consumers might face higher prices.

What’s Next for EU-US Trade?

The EU wants to keep talks open and find a fair solution. But it is clear that Brussels will not give in on key principles, such as regulatory independence. The US seems willing to keep some tariffs, arguing they are needed for fair competition.

As both sides prepare for more discussions, the global business community is watching closely. The outcome will affect not just Europe and the US, but trade across the world.

Author

  • Rudolph Angler

    Rudolph Angler is a seasoned news reporter and author at New York Mirror, specializing in general news coverage. With a keen eye for detail, he delivers insightful and timely reports on a wide range of topics, keeping readers informed on current events.

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