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The European Union (EU) has been informed by the United States (US) that certain American trade tariffs will remain in effect even after discussions between the two parties. European officials have stated that the US has not provided much insight into how the EU can lessen these tariffs.
During a meeting between EU trade commissioner Maroš Šefčovič, US commerce secretary Howard Lutnick, and US trade representative Jamieson Greer on Monday, it was made clear by the American side that Washington intends to maintain some level of tariffs. The discussions revolved around President Donald Trump’s reciprocal tariffs on the EU, set at 20%, as well as the 25% tariffs on US imports of steel, aluminum, and cars.
The EU diplomats revealed that US negotiators emphasized the need to bring back industry from overseas, which necessitated the retention of tariffs to some extent.
One diplomat expressed uncertainty about the US’s willingness to reduce tariffs, stating, “The US is not ready to reduce tariffs on cars or steel but maybe had flexibility on the reciprocal tariffs but their baseline would be 10 per cent. So what is there to be flexible on?” Another diplomat highlighted the chaotic nature of the Trump administration, making it challenging to discern genuine policy from negotiating tactics.
The European Commission refrained from commenting on tariff levels but urged the US to clarify its demands. EU trade spokesman Olof Gill emphasized the EU’s readiness to eliminate all industrial goods tariffs, pending a reciprocal gesture from the US.
Despite the uncertainty surrounding tariff negotiations, both the EU and the US are committed to engaging in constructive dialogue to reach a mutually beneficial agreement within the 90-day timeframe.