European Union considering tariff reductions with United States

The European Union is adamant to continue negotiations with the US on tariffs even though the latest round of talks between trade officials seems to have yielded few results.

Olof Gill, the Trade Spokesperson for the European Commission, the executive arm of the EU, reportedly remains committed to continuing negotiations, according to a document shared with the American CNBC publication following a meeting between US and EU trade representatives.

“As advocated from day one, we prefer negotiations to tariffs, which are damaging to our respective economies, business operators and consumers,” Gill is reported to have said.

The EU’s top trade official Maros Sefcovic, met US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer on April 14, though the publication notes that their meeting did not conclude in a breakthrough.

“It is clear that significant joint efforts will be needed to achieve a successful outcome within the 90-day window,” Gill said. “The EU is doing its part. Now, it is necessary for the US to define its position. As with every negotiation, this must be a two-way street.”

The debate over trade policies has heated up in recent weeks, with Washington imposing steep tariffs on virtually all of its trading partners, including the EU. Trump accuses the EU of being among the worst culprits in its trade treatment of the US and imposed broad tariffs on European steel, aluminium and automotive exports. The EU retaliated with duties worth more than €20 billion on American goods, though these countermeasures were then put on hold for 90 days, after Trump also paused a second round of tariffs on EU goods for the same period.

However, Washington has increased the pressure on the EU this week by announcing investigations into imports of pharmaceuticals and semiconductors.

“The Commission also continues with our preparatory work on additional countermeasures, should the negotiations fail to result in a successful outcome. And everything remains on the table,” Gill is cited by the publication.

According to the article, the EU’s top exporting products into the US are medicinal and pharmaceutical goods, road vehicles, and machinery. The EU recorded a trade surplus with the US of €48 billion in 2023, which is the result of a €157 billion surplus in goods and a deficit of €109 billion in services.

By Nazrin Sadigova