Trade officials from the European Union are moving ahead with talks with the United States, even as full tariff removal seems increasingly unlikely. Despite efforts to build a stronger partnership, key tariffs on steel, aluminum, and cars remain a major point of conflict.
Since March, the U.S. has maintained a 25% tariff on steel and aluminum products and a 10% tariff on most other EU goods. These measures were introduced under President Donald Trump’s trade policy, which aimed to protect American industries. The EU, however, continues to argue that the tariffs are unfair and hurt European exporters.
During a recent briefing to European lawmakers, EU official Matthias Jørgensen offered a cautious outlook. “We might need to rebalance if tariffs stay,” he told Members of the European Parliament (MEPs). Jørgensen signaled that while talks are advancing, removing all U.S. tariffs is not expected anytime soon.
A European diplomat, speaking on condition of anonymity, confirmed that the U.S. may insist on keeping a 10% baseline tariff on EU imports. “That will be very hard to accept for some member states,” the source noted.
Divided Opinions Within the EU
Reactions among EU member countries are mixed. France and Germany have taken a strong stance against keeping any tariffs. They see such policies as harmful to their auto and metal industries. On the other hand, countries like Ireland, Hungary, and Italy appear more flexible and open to compromise.
Polish official Michal Baranowski expressed doubts that the European Council could support a deal that includes ongoing 10% tariffs. “The Council will struggle with any deal including 10% tariffs,” he said, highlighting internal divisions that may delay a final agreement.
Dialogue Gains Momentum
Despite differences, momentum appears to be growing. Talks resumed recently after weeks of deadlock. Both sides have now re-engaged at technical and political levels.
EU Trade Commissioner Maroš Šefčovič called his recent phone conversation with U.S. Trade Secretary Howard Lutnick “constructive.” He said that both sides agreed to speed up their discussions and aim for real progress.
Šefčovič has already traveled to the U.S. three times to meet with his American counterparts. He expects another round of talks soon, possibly in Brussels or at the OECD forum.
Brussels has made several offers to ease tensions. These include lifting import restrictions on U.S. liquefied natural gas, soybeans, and AI technology. They also proposed a deal with zero tariffs on industrial goods, excluding sensitive areas like agriculture and digital services.
Jørgensen stressed that while the EU is ready to make deals, it will not compromise its standards. “We stay flexible but protect our regulatory autonomy,” he stated.
EU Prepares to Strike Back
As pressure mounts, the EU is preparing for possible retaliation. U.S. tariffs now affect about 70% of European exports to the American market. To respond, the European Commission has drafted a list of U.S. products worth €95 billion that could face new duties.
“If imbalance continues, we will act,” said Šefčovič. The list is under review by EU industries and governments. Officials are trying to balance pressure tactics with efforts to avoid an all-out trade war.
France, Spain, and Italy have asked that Bourbon Whiskey be excluded from the retaliation list. They fear that targeting this iconic American product could provoke a counter-strike against European wine and spirits, which are major export items.
This isn’t the first time that Bourbon was spared. During the last trade standoff, EU officials also avoided targeting it due to similar concerns.
Aircraft Tensions Add to the Mix
Another area of growing conflict involves the aviation industry. Recently, the EU added Boeing to its list of companies that may face countermeasures. This move came after the U.S. launched its own investigation, suggesting it might target Airbus in return.
Officials from both sides worry that these actions could escalate, damaging not just the airline industry but also broader economic ties. Past disputes between Airbus and Boeing have already led to years of tariffs and counter-tariffs, affecting parts suppliers, engineers, and investors.
A Path Forward?
While both the EU and the U.S. want stronger economic ties, their paths forward are full of obstacles. The Trump administration remains firm on keeping certain tariffs. European leaders are equally determined to protect their industries and standards.
Still, there is hope. The fact that talks have restarted and that both sides are showing willingness to negotiate is a positive sign. As trade experts have pointed out, progress often comes slowly and through careful steps.
The coming weeks could prove critical. A new round of meetings, possibly at the OECD forum, may unlock further cooperation. Whether the two sides can reach a balanced deal remains to be seen.