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Investing.com -- This week, the European Union (EU) and the United States made minimal progress in bridging trade differences, according to a report from Bloomberg News, citing people familiar with talks. Officials from President Donald Trump’s administration indicated that the majority of US tariffs imposed on the EU would not be removed.
Maros Sefcovic, the EU’s trade chief, emerged from the meeting with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer on Monday with little clarity on the US stance. The US officials indicated that the 20% "reciprocal" tariffs, which have been temporarily reduced to 10% for 90 days, as well as other tariffs targeting sectors including cars and metals, would not be removed outright.
Earlier this month, President Trump announced a broad array of tariffs in an effort to reshape the global trading system, bring manufacturing jobs back to the US, and raise revenue to fund a tax-cut extension. The EU, in response, has delayed for 90 days the implementation of a set of counter-tariffs against the US over 25% duties Trump imposed on the bloc’s steel and aluminum exports. These measures, which target around €21 billion of US goods, will be implemented after the 90 days if negotiations don’t yield satisfactory results.
While US officials suggested that sectoral measures had to stay, some of the tariffs on cars could be offset by increasing investments, production, and exports from the US. However, there are speculations that there’s no stopping the levies from increasing in the future if US exports don’t get a boost.
The EU has proposed that both sides remove all tariffs on industrial goods, including cars, a proposal the US has so far rejected. The US has expressed a desire for European chemical firms to produce more precursors used in the pharmaceutical industry in the US, integrate supply chains, and have preferential procurement.
On steel, aluminum, and potential future levies on copper, the US wants the EU to propose a plan, while suggesting the possibility of common tariffs. The EU has also proposed increasing purchases of liquefied natural gas from the US, but Trump officials have shown little interest in exploring this as an alternative to tariffs.
The US has insisted on discussing perceived non-tariff barriers such as digital and artificial intelligence regulations as well as food standards. Technical-level discussions between the two sides will continue.