Chances of resolving US-EU trade dispute over tariffs remain slim, expert says

Published on 02/06/2025 - 13:27 GMT+2

Brussels and Washington person small chance of breaking nan waste and acquisition deadlock they person been successful since mid-March and nan imposition of nan first US tariffs connected alloy and aluminium, Ignacio García Bercero, a erstwhile elder EU charismatic and master of nan Bruegel deliberation tank, told Euronews.

“It seems to maine very clear that if nan US is not fresh to return action to substantially mitigate nan effect of nan tariffs connected steel, aluminium and cars. I don't really spot really it is going to beryllium imaginable to scope immoderate benignant of negotiated agreement,” García Bercero said.

"The summation of US tariffs connected alloy and aluminium from 25% to 50% hardens nan position of nan US, which is nan only state tin of deciding really to extremity nan crisis.”

US President Donald Trump announced past Friday an summation successful US tariffs imposed successful mid-March connected alloy and aluminium coming into nan state — including EU imports — from 25% to 50%, arsenic of June 4.

Those tariffs travel connected apical of 25% US tariffs connected cars and 10% US levies connected each EU imports.

However connected 28 May, nan US Court of International Trade ruled that an emergency rule invoked by Trump did not springiness him unilateral authority to enforce nan 10% tariffs and ordered an contiguous artifact connected them.

The time after, a US tribunal of appeals paused nan little court's ruling to see nan government's entreaty connected 9 June.

But nan tariffs of 25% connected steel, aluminium and cars were not challenged by nan judges arsenic they were grounded connected a different rule regarding nationalist security.

Several investigations are presently being conducted by nan US connected nan aforesaid ineligible ground into nan pharmaceutical, semiconductor and craft industries, which could lead to further US tariffs.

“It is very clear that nan US has already indicated that it is not fresh to do thing connected nan 10% tariffs, which successful immoderate lawsuit are being challenged by a US court," García Bercero said.

"And it now appears that it is not very easy to do thing connected nan different tariffs which are based connected nationalist information – nan tariffs targeting steel, aluminium and cars aliases cars parts,” nan erstwhile EU charismatic explained.

“Quite frankly, I don't really spot really it is imaginable to scope immoderate benignant of agreement.”

“Therefore nan EU request to adopt rebalancing action astatine slightest connected steel, aluminium, cars and car parts increase,” García Bercero added.

Deadlines coming successful fast

The EU has presently suspended until 15 July a first database of US products worthy €21 billion to retaliate against US tariffs connected alloy and aluminium, aft Trump decided a 90-day region successful nan waste and acquisition conflict until 9 July.

A 2nd package is nether chat successful Brussels until 10 June to target €95 cardinal worthy of US equipment successful retaliation for nan 25% tariff connected cars and 10% connected EU imports, if negotiations pinch nan US fail.

Further countermeasures connected alloy and aluminium would request to beryllium adopted by EU personnel states.

After nan speech betwixt nan EU and nan US seemed to footwear disconnected 10 days ago, nan US president already threatened to enforce 50% tariffs connected each EU imports.

But a telephone betwixt Trump and European Commission President Ursula von der Leyen eased nan unit pinch nan committedness from some sides to "fast-track" nan waste and acquisition talks. 

Brussels stated that it did not change its connection successful nan negotiation, which includes zero-to-zero tariffs connected each business equipment and nan acquisition of definite strategical US products, specified arsenic energy, AI, aliases cultivation products.

“I'm not optimistic. But it doesn't mean that it's not nan correct maneuver to proceed to talk and to spot whether aliases not yet location is simply a willingness of nan US to put thing connected nan table,” García Bercero concluded.