EU‑US trade discussions stall without tariff resolution
Trade talks between the EU and the USA have not made significant progress. The American tariffs, delayed by 90 days, will not be lifted entirely, according to sources familiar with the matter who spoke to Bloomberg.
The European Union and the United States did not make significant headway in their trade discussions. EU trade commissioner Maroš Šefčovič accomplished little while meeting with American officials, including Commerce Secretary Howard Lutnick. An EU spokesperson stressed that "we need a clearer picture of what the Americans want to negotiate."
USA-EU: Fruitless trade negotiations
Bloomberg reported on Tuesday that the latest developments are unlikely to lead to a complete removal of U.S. tariffs that had been temporarily eased for 90 days. According to sources familiar with the situation, American authorities signalled that the 20% reciprocal tariffs, lowered to 10% during the reprieve, and other duties affecting industries like automotive and metals, are expected to remain in place.
This year's Trump tariffs on goods worth about 400 billion USD apply to the EU. The Union agreed to a 90-day delay in imposing retaliatory tariffs on American steel and aluminum (until July 14), a response to Trump's backtracking on announced tariffs that were initially intended to cover nearly the entire world.
EU proposals
The European Union proposed eliminating all tariffs on industrial goods, including a zero-zero solution on cars. Still, the USA rejected this proposal, demanding the removal of VAT on American goods in the EU. The Union is preparing to introduce further retaliatory measures if negotiations do not yield satisfactory results.
The EU claims that implementing retaliatory tariffs against the USA, suspended until July 14, would affect American goods worth approximately 29 billion CAD. Brussels leaves this option open if negotiations with Washington do not produce satisfactory outcomes.
