US, EU kick off formal trade talks amid tariff tensions

Brussels and Washington are exchanging negotiation documents in an effort to ease escalating trade frictions, but EU officials warn of pressure for "quick wins" from Trump administration.

The United States and European Union have launched formal trade talks in a bid to defuse rising tensions over tariffs, breaking months of deadlock that had left Brussels sidelined in Washington’s global trade agenda, Caliber.Az reports, citing the Financial Times. 

According to multiple sources familiar with the matter and a European Commission briefing note obtained by the FT, the two sides have, for the first time in months, exchanged negotiation documents outlining potential areas of cooperation. These include tariffs, digital trade, and investment opportunities.

The move comes as the EU seeks to avoid the full reimposition of punitive US tariffs, including a 25 per cent levy on steel, aluminium, and cars. While the EU’s 20 per cent “reciprocal” tariff has been halved until July 8 to allow room for talks, tensions remain high.

Sabine Weyand, the Commission’s top trade official, cautioned EU ambassadors that the bloc must remain measured and not succumb to the US desire for “quick wins”, 

According to the briefing note, some American tariffs—particularly in sectors Washington aims to reshore, such as steel and car manufacturing—are likely to remain in place.

The EU has struggled to make inroads with the US administration, lagging behind countries such as Japan, South Korea, Vietnam, and the UK, which have secured partial trade deals. Frustration boiled over in recent weeks when Jamieson Greer, Donald Trump’s trade representative, reportedly warned EU diplomats that continued delays and a lack of written proposals could prompt the full return of tariffs announced on April 2.

In a recent phone call, EU Trade Commissioner Maroš Šefčovič told Greer that he hoped to meet him in person at next month’s OECD ministerial meeting in Paris. Šefčovič has publicly stated the EU is willing to cut the transatlantic trade deficit by importing more US gas, agricultural products, and military equipment. However, American negotiators remain concerned over European regulations on digital services, food standards, value-added tax, and tariffs on US-made goods.

EU trade ministers, meanwhile, have rejected the recent US-UK trade deal—which left 10 per cent tariffs intact—as a model for the EU.

“We will not be happy with that kind of deal,” Swedish Trade Minister Benjamin Dousa said, warning the US to “expect countermeasures.” An EU official added bluntly: “10 per cent is not a deal.”

While the EU has temporarily paused €21 billion in retaliatory tariffs, the Commission last week proposed a new €95 billion package targeting US products such as Boeing aircraft, cars, and bourbon whiskey—signalling that it is prepared to retaliate if talks falter.

By Sabina Mammadli