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American Focus > Blog > Economy > US and EU break impasse to enable tariff talks
Economy

US and EU break impasse to enable tariff talks

Last updated: May 16, 2025 8:35 pm
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US and EU break impasse to enable tariff talks
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The US and EU have recently initiated serious trade talks in an effort to prevent the implementation of Donald Trump’s tariffs. This move comes after a period of deadlock that had left the EU lagging behind other countries in negotiations with the Trump administration. Negotiating documents have been exchanged between the two sides, outlining areas of discussion such as tariffs, digital trade, and investment opportunities.

Sabine Weyand, the European Commission’s top trade official, emphasized the importance of remaining calm and not rushing into any agreements to satisfy the US demand for quick wins. She cautioned that some US tariffs, particularly in sectors like steel and car manufacturing, are likely to remain in place. The EU, which has been accused by Trump of unfair trade practices, has faced challenges in making progress with US officials compared to other countries.

Jamieson Greer, Trump’s trade representative, has pushed for progress by expressing frustration with the EU’s reluctance to provide written proposals. Without concrete steps from Brussels, Greer warned that Trump could reimpose tariffs. The EU has temporarily reduced reciprocal tariffs until July 8 to facilitate negotiations.

MaroŔ Šefčovič, EU trade commissioner, has expressed interest in reducing the US-EU trade deficit by increasing imports of US gas, weapons, and agricultural products. However, concerns have been raised by the US regarding VAT, digital regulations, food standards, and tariffs on certain American goods. The upcoming talks are expected to focus on pharmaceutical regulations and market access for US agricultural products.

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EU trade ministers have made it clear that the recent US-UK agreement, which left tariffs in place, is not a model for the EU. The bloc has temporarily suspended retaliatory tariffs due to the ongoing negotiations but has proposed additional tariffs on Boeing aircraft, cars, and bourbon whiskey. The EU is also considering measures to reduce reliance on Chinese exports and address alleged subsidies.

Weyand’s visit to Washington highlighted the US’s strategic approach to trade agreements, aiming to influence supply chains and reduce dependence on Chinese products. The EU remains firm on certain issues, such as VAT and digital regulations, while also exploring opportunities for cooperation with the US on critical raw materials and medicines.

As discussions progress, it is essential for both parties to navigate the challenges and opportunities presented by the evolving trade landscape. Stay informed and engaged with the latest updates on EU-US trade relations.

TAGGED:BreakenableimpasseTalksTariff
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