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Apr 3, 2025 4:52 pm
Global Media Network
EU, US Restart Talks on Tariff Dispute
The EU and the United States will restart trade talks next week after a pause of two months. Both sides want to fix several difficult issues still unresolved in their tariff deal agreed in July. The decision to meet again comes after growing frustration in Washington over what it sees as slow progress from the EU. The July deal was aimed at preventing a trade crisis, but many details remain unsettled. Senior US officials, including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, will travel to Brussels on Monday. They will meet ministers, European commissioners and major industry leaders. These meetings are the first in-person discussions since the US government shutdown that began in early October. The shutdown lasted six weeks and delayed all trade work. With government operations now restored, both sides want to regain momentum. Lutnick and Greer have also been invited to a lunch with ministers from all 27 EU member states. This lunch is seen as a risky but important moment. Trade officials hope the gathering stays focused on the main issues and does not turn into a series of individual demands from different countries. Some insiders worry that too many requests could slow progress even further. The July agreement was reached during a meeting between Donald Trump and EU leaders at Trump’s golf course in Scotland. The deal prevented Trump from imposing a 50% tariff on EU goods by setting a baseline tariff of 15% on most EU imports instead. However, the agreement is not legally binding. It still needs approval in the European parliament, which could take until February. This delay has contributed to Washington’s impatience. Several major sticking points will be discussed on Monday. One ongoing problem is that the United States is still applying 50% tariffs on EU steel and aluminium. These were not resolved in the July deal. There are also separate tariffs on hundreds of products that include steel parts. Many European governments want these removed. Another sensitive issue involves food and drink taxes. Countries such as France, Ireland and many wine-producing nations want the 15% tariff on wine and spirits removed. Producers of Cognac, whiskey and other drinks say the tariffs are hurting sales in the American market. Before a planned dinner on Monday evening, Lutnick and Greer will also meet EU trade commissioner Maroš Šefčovič, defence commissioner Andrius Kubilius and technology commissioner Henna Virkkunen. They will discuss ongoing problems with chip supplies from China. The global chip shortage has created pressure on industries including automobiles, electronics and defense. European leaders want closer coordination with the United States on this issue. US officials will also attend a business round table. Industry bosses from major companies such as Volkswagen and TotalEnergies are expected to join the discussion. These companies want clarity on future tariffs because uncertainty makes planning difficult. One of the EU’s top priorities is convincing Washington that the long list of steel-related tariffs goes against the spirit of the July deal. In September, the United States added 407 products that include any steel element, ranging from knitting needles to wind turbines and washing machines. These face separate tariffs. The US is now considering adding nearly 700 more products, including tin cans and bicycles. European companies say this creates confusion and unexpected costs. Some manufacturers, such as German agriculture machinery maker Krone, say the extra tariffs are hidden and unpredictable. Exporters report facing charges as high as 200% when US customs officers believe their paperwork is incomplete. Companies must provide documents that trace the source of steel through every level of supply, including the supplier of the supplier of the supplier. Many businesses say this level of detail is impossible to provide on short notice. The EU and the US will also explore ways to protect their domestic steel industries from cheaper imports from China. Brussels recently announced steel anti-dumping proposals in October that match Trump’s steel tariffs. European officials hope this alignment will push the US president to reduce or remove the 50% tariffs on EU steel. With both sides under pressure from industry and rising economic costs, officials say the coming talks are important for stabilizing trade ties. The outcome will determine whether the July deal can move forward or whether tensions between the EU and the United States will grow again.
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