The European Union (EU) found no significant gains in its recent trade negotiations with the United States, largely due to the U.S.’s steadfast stance on maintaining most of the tariffs imposed on the EU. According to reports from Bloomberg, Maroš Šefčovič, EU’s Commissioner for Trade and Economic Security, engaged in a two-hour tariff negotiation with U.S. officials including Commerce Secretary Howard Rutnick and United States Trade Representative (USTR) Jamie Greer in Washington, D.C.
Multiple sources indicated that during the talks, the EU proposed a mutual removal of tariffs on all industrial goods, including automobiles, but the U.S. rejected this proposal. The EU also suggested increasing the purchase of U.S. liquefied natural gas (LNG), yet this was met with little interest as an alternative by the U.S. side. This stance sharply contrasts with earlier remarks by President Donald Trump, who suggested that purchasing U.S. energy could help reduce the EU’s trade surplus with the U.S.
EU sources expressed frustration, stating that Šefčovič left the meeting without a clear understanding of the U.S.’s position, finding it difficult to discern the U.S.’s objectives. Despite the temporary suspension of mutual tariffs for 90 days by Trump, the U.S. indicated it would not retract most of the tariffs, including a 20% tariff set to be imposed on automobiles and metals.
According to the EU, the 10% basic tariff currently affects EU’s exports to the U.S., impacting goods valued at around 380 billion euros. The U.S. also imposed product-specific tariffs on steel, aluminum, automobiles, and automotive parts, while considering tariffs on semiconductors, pharmaceuticals, and rare metals.
Additionally, the U.S. communicated its desire for European pharmaceutical companies to produce more precursor materials in the U.S., which would integrate supply chains and apply procurement preferences. They also suggested the EU increase medicine prices within the region. This is consistent with Vice President JD Vance’s argument that lower European medicine prices are subsidized by American consumers.
Bloomberg reported that while the U.S. expects the EU to propose negotiation terms, it also mentioned the possibility of joint tariffs. However, implementation of some of these measures could conflict with World Trade Organization (WTO) regulations and might not receive widespread support within the U.S. administration.
The discussions also touched on non-tariff barriers like digital and artificial intelligence (AI) regulations and food standards. Technical discussions on these matters are expected to continue between the two sides.
Meanwhile, the EU planned to impose retaliatory tariffs on 21 billion euros worth of U.S. imports in response to the U.S.’s 25% tariffs on steel and aluminum. However, with President Trump’s suspension of mutual tariffs, the EU delayed these retaliatory measures for 90 days. The EU warned that if negotiations do not yield satisfactory results, their response measures will be activated. Despite Trump’s accusations that the EU was designed to deceive the U.S. and his criticism of the trade surplus, the average weighted tariff rate of the EU was only 2.7% as of 2023, according to the WTO.