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The European Commission continues trade negotiations with the United States despite growing doubts about meaningful tariff reductions. EU officials now expect most US tariffs on European goods to remain in place under any final agreement.

Matthias Jørgensen, the EU trade representative, told Members of the European Parliament (MEPs) that the US views tariffs as a legitimate tool in trade policy. He warned that the EU might have to respond with its own trade countermeasures if tariffs stay high.

US Tariffs on EU Goods Remain a Major Barrier

Since March, the US has imposed tariffs of 25% on European steel, aluminium, and cars. Additionally, a 10% tariff applies to all other EU imports. A European diplomat said that reducing these tariffs below 10% seems increasingly unlikely.

Poland’s Michal Baranowski noted that EU governments would find it hard to back a deal if tariffs stay this high. France and Germany have strongly opposed such an outcome, while Hungary, Ireland, and Italy have been more flexible.

Negotiations Continue Despite Rising Concerns

EU Trade Commissioner Maroš Šefčovič described recent talks as “constructive” after weeks of stalemate. He highlighted a productive phone call with US Trade Secretary Howard Lutnick. Both sides agreed to speed up discussions at expert and political levels.

Šefčovič has already traveled to the US three times this year. He plans to meet soon with US Ambassador Jamieson Greer to further negotiations.

Brussels has proposed removing tariffs on industrial goods, increasing US liquefied natural gas (LNG) imports, and boosting trade in soybeans and artificial intelligence technology. Jørgensen also said there is potential to deepen transatlantic investment flows.

However, the EU firmly rejected any talks on relaxing its regulations. Jørgensen said, “EU legislation is not negotiable.” Officials stressed that while they remain flexible, they will not compromise their regulatory independence.

EU Prepares Retaliation if Tariffs Persist

The European Commission is readying a €95 billion list of US goods to target with retaliatory tariffs if trade talks fail. Šefčovič stressed that Europe cannot accept a long-term trade imbalance, with 70% of EU exports now facing US tariffs.

Consultations have begun on which American products to include, with member states and industries providing input. France, Italy, and Spain are pushing to exclude US bourbon from the retaliation list to protect their own wine and spirits sectors.

These countries successfully kept bourbon off the list during prior negotiations before a 90-day trade war pause. However, concerns grow over the aviation sector after the EU added Boeing products to its retaliation package.

Member states worry the US might retaliate against Airbus, intensifying tensions in the transatlantic aerospace rivalry.