U.S.-EU Trade Talks Stall as Trump Pushes for Unilateral Tariff Cuts

Trade tensions between the United States and the European Union are escalating, with U.S. negotiators demanding unilateral tariff reductions from the EU, according to a report by the Financial Times. Citing unnamed sources, the report says U.S. Trade Representative Jamieson Greer is expected to tell European Trade Commissioner Maros Sefcovic that the EU’s recent “explanatory note” fails to meet Washington’s expectations.

The two sides have been engaged in ongoing negotiations aimed at preventing the implementation of additional 20% “reciprocal” tariffs by the U.S., but progress has been limited. While the EU is advocating for a mutually agreed framework to guide the talks, the gap between the positions remains significant, hampering potential resolution.

The dispute stems from earlier U.S. tariff actions. In March, the U.S. imposed 25% tariffs on European cars, steel, and aluminum, followed by 20% tariffs on other goods in April. The U.S. later reduced the new 20% tariffs by half, giving a 90-day window—ending July 8—for both parties to negotiate a broader agreement.

In an attempt to deescalate the situation, the 27-member European Union suspended its retaliatory tariff plans and proposed eliminating industrial tariffs altogether on both sides. However, the latest demands from the U.S. side have rekindled uncertainty about whether the talks can deliver a breakthrough.

Neither the European Commission nor the Office of the U.S. Trade Representative has publicly commented on the latest developments. As the deadline approaches, businesses on both continents remain on edge, awaiting clarity on whether a deal can be reached to avoid a costly transatlantic trade war.