U.S. and EU Hold Tense Paris Trade Talks Amid Growing Tariff Dispute/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. and European trade officials met in Paris seeking common ground on tariffs but made limited progress. President Trump’s recent steel tariff hike and longstanding criticism of EU trade practices intensified tensions. Both sides remain divided on key issues like auto tariffs, VATs, and food regulations, leaving a deal elusive.
U.S.-EU Tariff Talks: Quick Looks
- U.S. and EU negotiators met on sidelines of OECD summit in Paris
- EU’s Šefčovič called discussions “on pace,” but no breakthrough expected
- Trump’s recent 25% auto tariff and steel duties fuel EU frustration
- EU prepares countermeasures and reaffirms offer of “zero for zero” tariff deal
- Longstanding U.S. complaints include VATs, agriculture bans, and regulatory hurdles
- No major trade deal anticipated before the next round of negotiations
U.S. and EU Hold Tense Paris Trade Talks Amid Growing Tariff Dispute
Deep Look
Paris, France — June 4, 2025: Trade negotiators from the United States and European Union met in Paris on Wednesday amid mounting tensions over tariffs, with both sides signaling that a swift breakthrough remains unlikely.
The high-stakes meeting took place on the sidelines of the Organisation for Economic Cooperation and Development (OECD) summit. European Commission Vice President and chief trade negotiator Maroš Šefčovič sat down with U.S. Trade Representative Jamieson Greer in an effort to reset strained transatlantic economic ties.
“We’re advancing in the right direction at pace,” Šefčovič told reporters. He indicated that ongoing technical meetings between EU and U.S. negotiators would be followed by a video conference to “assess the progress and chart the way forward.”
However, the broader landscape is less optimistic.
President Donald Trump, whose administration has aggressively pursued unilateral tariff hikes, recently imposed a surprise 25% tariff on steel imports — reigniting fears of a trade war and complicating already-fraught negotiations. Trump’s repeated focus on the U.S. trade deficit with the EU, which reached $161 billion last year, remains central to his criticism of what he calls “unfair” European trade practices.
Central to the dispute is the auto industry. Trump has slammed the EU’s 10% tariff on imported vehicles, calling it a significant trade imbalance given the previous U.S. rate of 2.5%, which he raised to 25% in April. The EU counters that trade in services and other sectors more than offsets the goods deficit and has offered a “zero-for-zero” tariff deal to eliminate duties on industrial goods, including cars — an offer still on the table but dismissed by Trump.
The EU’s recent threat to implement countermeasures if no deal is reached adds pressure to the discussions. “Europe is capable of having countermeasures on American products and services,” French Trade Minister Laurent Saint-Martin said.
While Greer has kept talks open, former U.S. trade official Greta Peisch questioned how motivated the Trump administration truly is to reach a compromise, noting the administration’s long history of grievances toward European trade policies.
“The zero-for-zero deal could offer a path forward, but is the U.S. really looking to compromise?” she asked.
Among Trump’s longstanding targets is the value-added tax (VAT), a consumption-based tax levied across Europe. The administration sees it as disadvantaging U.S. goods, although VATs are applied domestically and to imports alike. Experts argue the tax is not a trade barrier — and certainly not one likely to be restructured for trade appeasement.
Other flashpoints include stringent EU food safety regulations. Trump officials have frequently criticized bans on hormone-treated beef, chlorinated chicken, and genetically modified organisms (GMOs) as protectionist, though Europe views these measures as essential public health safeguards.
“When you’re talking about chickens or GMOs or safety standards, you’re really talking about how societies choose to govern themselves,” said Peisch. “That tension has existed for decades, and neither side is eager to budge.”
Trade experts predict that no major progress will be made until later this year, if at all. For now, the negotiations in Paris are viewed as a testing ground for future engagement, rather than a forum for immediate resolution.
As both sides dig in on foundational issues — and Trump continues to frame the EU as a trade rival — the possibility of a full-fledged transatlantic trade deal remains uncertain.
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