US President Donald Trump’s administration has reportedly escalated pressure on the European Union to reduce the tariffs on American goods unilaterally, as per a report by the Financial Times. The report revealed that US trade officials are warning the EU that failure to abide could lead to a new 20% ”reciprocal” tariffs.
The US Trade Representative, Jamieson Greer, is set to convey to Trade Commissioner Maros Sefcovic that Brussels’ latest ”explanatory note” for ongoing tariff discussions fails to meet American demands. The US reportedly considers the document insufficient as a basis for serious negotiations.
Talks have been interrupted as both countries continue to be at odds regarding the structure and content of a potential deal. While the EU has offered a jointly drafted framework for driving discussions, on the other hand, US negotiators are seeking quicker, unilateral decisions from the European bloc.
Tensions mounts over steel, auto and industrial goods
The trade tension mounted earlier this year when the US levied 25% tariffs on European cars, aluminium, and steel in March, followed by 20% tariffs on additional EU goods in April. Although Washington later divided the 20% rate, it set a deadline of July 8 for finalizing a broader tariff deal, making a strict 90-day window for further negotiations.
In an attempt to de-escalate tensions, the European Union halted its planned retaliatory tariffs on selected US products. The 27-member bloc suggested removing all industrial tariffs on both sides.
As of now, no responses have been received on the report by the European Union or by the Office of US Trade Representative. The ongoing dispute between the two nations raises concerns on the US-EU trade talks as both economies are steering through post-pandemic recovery challenges.