US-EU Trade Talks See Progress, But Steel Tariffs Not Helping/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Trade officials from the U.S. and EU met in Paris but failed to reach a breakthrough on tariffs. Both sides reported progress, though sharp differences remain over autos, taxes, and food safety rules. President Trump’s recent steel tariffs and EU threats of countermeasures add urgency to the negotiations.
US-EU Trade Talks Progress, No Deal: Quick Looks
- Talks Continue in Paris: U.S. Trade Representative Jamieson Greer and EU Trade Chief Maroš Šefčovič held discussions on tariff disputes during the OECD meeting.
- No Breakthrough Achieved: While both sides cited momentum, no formal trade agreement was reached.
- Trump’s Tariffs Trigger EU Warning: Following surprise U.S. tariffs on steel, the EU announced it is ready to retaliate with countermeasures.
- Auto Tariffs a Major Sticking Point: The U.S. raised import taxes on European cars from 2.5% to 25%, while the EU maintains a 10% levy.
- EU Pushes ‘Zero-for-Zero’ Proposal: The EU offered to eliminate industrial tariffs on both sides — including autos — but Trump rejected the deal.
- U.S. Trade Deficit With EU a Factor: The $161 billion goods deficit remains a key complaint from the Trump administration.
- VAT Still Controversial: Trump targets Europe’s value-added tax system, calling it protectionist, though it applies to all goods equally.
- Food Safety Rules Another Divide: U.S. demands on hormone-treated beef, GMOs, and chlorinated chicken face resistance from the EU.
Deep Look: US-EU Tariff Talks Make Headway in Paris, But Key Disputes Remain
PARIS — Trade negotiators from the United States and European Union met in Paris this week, signaling some momentum in long-stalled tariff talks, but failed to achieve any significant breakthrough. Despite positive tones from both sides, major obstacles persist, including disputes over auto tariffs, food safety regulations, and value-added taxes.
The discussions, held on the sidelines of the Organization for Economic Cooperation and Development (OECD) conference, brought together U.S. Trade Representative Jamieson Greer and EU Vice President Maroš Šefčovič, two of the top officials trying to resolve escalating trade tensions between the economic giants.
“We’re advancing in the right direction at pace,” Šefčovič told reporters in Paris, pointing to a continuation of technical talks in Washington and plans for a virtual follow-up meeting.
Greer echoed the optimism, calling the talks “constructive,” and credited the EU with showing “willingness to work with us to find a concrete way forward to achieve reciprocal trade.”
Auto Tariffs and Industrial Goods: The Flashpoints
The heart of the dispute remains the Trump administration’s aggressive tariff strategy. President Trump’s decision to hike tariffs on imported European vehicles from 2.5% to 25% — while criticizing the EU’s long-standing 10% tax — has become a symbolic and practical sore spot in negotiations.
While the EU has offered a “zero-for-zero” industrial goods tariff plan, which would include autos, Washington has shown little interest. Trump’s emphasis on reducing the $161 billion U.S. goods trade deficit with the EU has shifted focus away from mutual economic benefit toward political pressure.
“We still have a few weeks to have this discussion and negotiation,” said French Trade Minister Laurent Saint-Martin. “If not, Europe is capable of having countermeasures on American products and services.”
Steel Tariffs and Rising Tensions
The talks were further complicated by the U.S. administration’s unexpected announcement of new steel tariffs last week. The move rattled global markets and prompted the EU to announce that it is preparing retaliatory measures, escalating the possibility of a broader trade war.
Value-Added Taxes and Regulatory Deadlock
One of the most contentious issues is the value-added tax (VAT), which Trump calls unfair. However, VAT systems apply uniformly to all goods — domestic and imported — and are set at the national level, not by the EU as a bloc. This makes sweeping changes unlikely.
Also under fire from U.S. negotiators are EU food and health regulations. Washington considers bans on hormone-raised beef, genetically modified organisms (GMOs), and chlorinated chicken as protectionist, while the EU defends them as necessary for public safety.
“When you start talking about chickens or GMOs or automobile safety standards, you’re talking about the ways countries choose to regulate their economies,” said William Reinsch of the Center for Strategic and International Studies.
Looking Ahead: Real Progress or Political Theater?
While the tone has improved, analysts question how serious the U.S. side is about finding common ground. Greta Peisch, a former U.S. trade official under President Biden, said the EU’s zero-tariff offer could provide a solution — if the Trump administration is genuinely interested.
“How motivated is the U.S. to come to a deal with the EU?” she asked. “Trump has long-held grievances and has made clear his skepticism of European trade practices.”
What’s Next?
Negotiators will continue technical-level discussions in Washington, followed by a video meeting between Šefčovič and Greer. Meanwhile, Trump continues to apply pressure, using tariffs as both a negotiating tool and a political weapon.
With European elections approaching and Washington focused on domestic manufacturing, both sides must weigh the risks of further economic disruption against the rewards of securing a transatlantic trade truce.
