Trump’s tariff stance strains US-EU trade talks as Washington signals little room for concessions

Trump’s tariff stance strains US-EU trade talks (Representative Image)

The United States has told the European Union that it intends to maintain some trade tariffs even after ongoing negotiations, casting doubt over the scope of any breakthrough in transatlantic trade talks. According to EU diplomats briefed on the Monday meeting between EU trade commissioner Maroš Šefčovič, US commerce secretary Howard Lutnick, and trade representative Jamieson Greer, the American delegation was clear that tariffs on cars, steel, and aluminium would remain largely untouched, the Financial Times reported.

While the Trump administration has temporarily reduced the so-called reciprocal tariffs on EU goods from 20 percent to 10 percent for a 90-day window of negotiations, US officials reportedly gave little indication of how that rate could be further lowered or what concessions from Brussels might prompt deeper cuts. “The US is not ready to reduce tariffs on cars or steel but maybe had flexibility on the reciprocal tariffs,” one EU diplomat said. “But their baseline would be 10 per cent. So what is there to be flexible on?”

Tariffs seen as tool to repatriate industry

The administration’s position reflects its broader push to bring industrial production back to the United States. American negotiators emphasized that maintaining tariffs at some level was necessary to incentivize domestic manufacturing. But the lack of clear demands from the US side has led to frustration in Brussels. A second EU diplomat said the instability within the Trump administration made it difficult to distinguish between policy and negotiating tactics. “Keeping the tension, making everything ‘temporary’ has become pretty much a pattern,” they added.

Šefčovič reiterated the EU’s standing offer to mutually remove all tariffs on industrial goods, but EU officials said they still lack clarity on what outcomes the US is aiming for. “We need to hear more from the Americans,” said EU trade spokesman Olof Gill. “Now, it is necessary for the US to define its position.”

EU braces for further tariffs amid mixed signals

The meeting also touched on potential US tariffs on semiconductors and pharmaceutical imports, with Trump ordering probes into both sectors this week. While Šefčovič emphasized the importance of resilient transatlantic supply chains in these industries, Gill made clear that the EU’s food safety standards — including opposition to US chlorine-washed chicken — remain “sacrosanct.”

Despite the lack of progress, the EU continues to approach the talks constructively, Gill said, noting the bloc’s willingness to find common ground within the 90-day negotiation window. The EU has paused retaliatory tariffs it had prepared in response to the US steel and aluminium levies until July 14, but Gill warned that Brussels is preparing further measures if no agreement is reached.

While US trade officials maintain that “numerous countries have been responsive” to the administration’s agenda, the outcome of the EU talks remains uncertain. The Trump administration has long cited the EU’s $235 billion goods surplus as justification for its tariffs and has demanded that Brussels buy more US goods, including liquefied natural gas and cars.

As negotiations continue, the EU is urging Washington to articulate a clearer path forward. Until then, Brussels appears to be bracing for a prolonged standoff.