EU‑US trade standoff: Tariffs remain despite 90‑day reprieve
Trade talks between the EU and the USA did not make significant progress. Delayed by 90 days, American tariffs will not be completely lifted, sources familiar with the matter told Bloomberg.
The European Union and the United States did not achieve significant progress in trade talks. EU Trade Commissioner Maroš Šefčovič made little headway during discussions with American officials, including Commerce Secretary Howard Lutnick. An EU spokesperson highlighted the need to understand better the Americans' negotiation aims.
USA-EU: Fruitless trade negotiations
According to Bloomberg’s Tuesday report, the latest developments will unlikely lead to removing U.S. tariffs that were temporarily reduced for 90 days. Citing sources with knowledge of the issue, the agency notes that American officials do not intend to fully withdraw the 20% reciprocal tariffs—currently halved to 10%—nor other duties affecting industries like automotive and metals.
This year's tariffs imposed by the Trump administration on the EU affect goods valued at about £320 billion. The Union agreed to a 90-day delay in implementing retaliatory tariffs on American steel and aluminium (until 14th July), which was a response to Trump retracting announced tariffs that were to cover nearly the entire globe.
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 states that implementing retaliatory tariffs against the USA, suspended until 14th July, would impact American goods valued at approximately £18 billion. Brussels keeps this option available if negotiations with Washington do not yield satisfactory outcomes.
