US Expected Not to Remove 20% Reciprocal Tariffs on EU as Little Progress Made in Talks

TMTPOST -- U.S. President Donald Trump may not remove his sweeping reciprocal tariffs on the European Union as recent talks over tariffs between two sides reportedly ended almost without any progress.

Credit：Maros Sefcovic

The EU officials expected the Trump administration would remain most of its tariffs on the bloc after the two-hour meeting with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer in Washington on Monday, reported Bloomberg on Tuesday.

Maros Sefcovic, the EU’s commissioner for trade and economic security, was said to leave the meeting with “little clarity” on the U.S. stance, struggling to tell his U.S. counterpart’s aims, the report cited people familiar with the talks.

The U.S. officials were said to indicated 20% reciprocal tariffs and other sectoral tariffs such as those on cars would not be removed outright.The U.S. would like to see European chemical firms produce more precursors used in the pharmaceutical industry in the U.S., integrate supply chains, have preferential procurement and suggested the EU should increase the price of its medicines, the report cited sources.

The U.S. government wants the EU to develop a proposal for levies on steel, aluminum and possible new tariffs on copper, while floating the possibility of common tariffs, per the sources. The Trump administration has reportedly shown little appetite in working more liquefied natural gas (LNG) purchases for the EU to avoid tariffs. The U.S. officials have insisted on discussing what Washington perceives as non-tariff barriers such as digital and artificial intelligence (AI) regulations as well as food standards, according to the report.

An official with the Office of the United States Trade Representative (USTR) said their office does not disclose the content of negotiations. The U.S. Department of Commerce and the European Commission, the executive arm of the EU, didn’t comment on the report. The report noted the EU has floated that both sides remove tariffs on "industrial goods, including cars," but the U.S. has rejected those terms.

Sefcovic, as the EU trade chief, on Tuesday posted on X that he had met with Lutnick and Greer in Washington to seize the 90-day window for a mutual soluton to unjustified tariffs. “The EU remains constructive and ready for a fair deal, including reciprocity through its zero-for-zero tariff offer on industrial goods and the work on non-tariff barriers,” Sefcovic worte in a post. “Achieving this will require a significant joint effort on both sides.”

Trump said last Wednesday in the post he has authorized a 90-day pause and “a substantially lowered reciprocal tariff” of 10% during this period, both effective immediately. The White House clarified that Trump’s announcement of a 90-day pause on tariffs means that the “tariff level will be brought down to a universal 10% tariff” during that time, while “negotiations are ongoing.”

The EU last Thursday decided to temporarily pause the implementation of its countermeasures for talks over possible trade deals. The European Commission estimated a total of nearly €21 billion worth of goods imported from the U.S. will be affected by its countermeasures against U.S. tariffs on steel and aluminum imports.

“We took note of the announcement by President Trump. We want to give negotiations a chance. While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days, ” European Commission President Ursula von der Leyen said in a statement on Thursday.

Von der Leyen still cautioned U.S. higher tariffs on the EU. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues,” head of the EU executive branch said. “As I have said before, all options remain on the table.”