Trade negotiations between the European Union and the United States are showing signs of progress, according to lead negotiators from both sides, despite heightened tensions triggered by Washington’s decision to double tariffs on metal imports.
Following a meeting in Paris, EU Commissioner Maroš Šefčovič and US Trade Representative Jamieson Greer described their discussions as constructive and forward-looking. Šefčovič said the talks were now taking a “very concrete” direction after months of divergence in approach. “We are advancing in the right direction, at pace,” he told reporters.
Greer echoed the sentiment in a statement, highlighting a mutual “willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade.”
However, optimism was tempered by frustration in Brussels over the sudden increase in US tariffs on steel and aluminium imports, which doubled from 25% to 50%. The move, which took effect as trade partners were invited to submit their “best offers” to avoid further tariffs in July, was described by Šefčovič as unhelpful.
“We face the same issue of overcapacity,” he said. “This is a shared challenge, and we should be addressing it together, not through unilateral measures.”
The dispute unfolds against a backdrop of broader global trade uncertainty. The EU is also grappling with the fallout from China’s recent export restrictions on critical minerals. These curbs have forced production halts at some European auto parts factories and disrupted supply chains, with German carmaker BMW warning of knock-on effects to its network.
Meanwhile, former US President Donald Trump weighed in on trade relations with China, calling President Xi Jinping “very tough” and “extremely hard to make a deal with,” in a post on Truth Social. The comments came just days after Trump accused Beijing of backtracking on prior agreements and amid anticipation of a direct conversation between the two leaders.
Legal challenges have also complicated Trump’s trade agenda. A US trade court recently ruled that he overstepped his authority in imposing certain tariffs, only for an appeals court to reinstate them pending further review.
While Washington has initiated talks with multiple partners, only the UK has reached a preliminary framework deal. British Prime Minister Keir Starmer expressed confidence that US tariffs on UK steel would be eliminated within weeks.
Other countries, including Mexico, are pushing for exemptions. “It makes no sense to put a tariff on a product in which you have a surplus,” said Mexico’s Economy Minister Marcelo Ebrard.
Amid these developments, global business sentiment is deteriorating. French spirits group Rémy Cointreau has shelved long-term sales targets, and Austrian steelmaker Voestalpine warned that tariffs could impact earnings. German industry body WSM called the tariffs “bottomless” and urged the EU to resolve the dispute swiftly.
With global economic growth forecasts downgraded by the OECD due to trade disruptions, pressure is mounting on both sides of the Atlantic to find common ground.
