EU seeks immediate U.S. tariff relief and ‘stand-still’ pledge in trade talks

The European Union is pressing Washington to roll back punitive tariffs on its exports and to promise no new duties, a senior law-maker said on Wednesday, as negotiators race to finalise a framework accord by 1 August.

The head of the European Parliament’s trade committee, German Social Democrat Bernd Lange, told reporters he saw “a corridor for some understanding” on levies that currently slap 50 % duties on EU steel, 25 % on cars and a blanket 10 % on most other goods bound for the United States.

Brussels wants the reductions to take effect as soon as a framework agreement is struck, rather than weeks later, and is demanding a “stand-still clause” that would bar any fresh U.S. measures while the full pact is drafted.

“So far there is no clear commitment from the U.S. side,” Mr Lange said.

The tariffs, revived and expanded by President Donald Trump earlier this year, threaten sectors worth tens of billions of dollars to the bloc. EU carmakers exported vehicles worth €38.9 billion (about $45.5 billion) to the United States in 2024, according to industry body ACEA. Steel lobby Eurofer warns that the 50 % duty endangers more than 3.8 million tonnes of annual EU shipments.

Commission officials, negotiating on behalf of the 27-nation bloc, say talks are “intensive” but give no timetable for a breakthrough. Diplomats note that Brussels is also weighing whether to keep its own retaliatory measures in reserve.

U.S. trade representatives have not commented publicly on the EU’s twin demands. Washington is preparing separate sector-specific levies of 50% on imported copper and new duties on semiconductors and pharmaceuticals, moves EU officials argue would undermine any deal unless frozen.

Analysts warn that failure to secure early relief could spur European producers to divert investment outside the bloc.

“Uncertainty over tariffs is already holding up decisions on new low-carbon steel plants,” said one executive at a major EU mill.

Parliament must sign off on any final accord, giving Mr Lange’s committee leverage.

“Industry needs clarity more than anything,” he said. “A quick win on tariff relief would send a strong signal that transatlantic trade can still work in a rules-based way.”

Copied