Stall in trade talks: US tariffs still loom over EU
Trade talks between the EU and the USA have not made significant progress. The American tariffs, delayed by 90 days, will not be completely lifted, sources familiar with the matter told Bloomberg.
The European Union and the United States failed to make significant progress in their trade talks. EU trade commissioner Maros Sefcovic accomplished little while speaking with American officials, including Commerce Secretary Howard Lutnick. An EU spokesperson highlighted the necessity of gaining a better understanding of the United States' negotiating intentions.
USA-EU: fruitless trade negotiations
As reported by Bloomberg on Tuesday, this situation will most likely not result in the lifting of the American tariffs delayed by 90 days. According to the agency, citing anonymous sources familiar with the situation, U.S. officials have signaled that the 20% "reciprocal" tariffs—temporarily lowered to 10% for a 90-day period—along with other duties affecting industries like automotive and metals, are unlikely to be fully removed.
This year's tariffs imposed by the Trump administration on the EU cover goods worth about 429 billion USD. The Union agreed to a 90-day delay in imposing retaliatory tariffs on American steel and aluminum (until July 14), which was a response to Trump backing out of announced tariffs that were 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, but 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 by implementing retaliatory tariffs against the USA, currently suspended until July 14, they would affect American goods worth approximately 23.7 billion USD. Brussels leaves this option open in case negotiations with Washington do not produce satisfactory outcomes.
