The European Union is preparing for a trade deal with the United States that may leave tariffs on key European exports in place. Despite renewed diplomatic efforts, Washington shows no signs of lifting the duties introduced by the Trump administration in mid-March. EU officials say they are ready to act if talks do not lead to a fair agreement.
EU Braces for Unbalanced Trade Terms
Matthias Jørgensen, a senior trade advisor to the European Commission, told Members of the European Parliament this week that US officials view tariffs as a way to “level the playing field.” Jørgensen warned that if the United States refuses to reduce or eliminate duties, the EU may have no choice but to respond.
Since March, the US has imposed a 25% tariff on EU steel, aluminium, and automobiles. Other goods face a 10% levy. European diplomats say that reducing tariffs below 10% seems unlikely under current conditions. Polish diplomat Michał Baranowski noted that any deal preserving these duties would face “strong resistance in the Council,” especially from France and Germany. Meanwhile, Hungary, Italy, and Ireland have taken a more reserved stance.
Renewed Talks Offer Hope for Progress
After weeks of stagnation, EU Trade Commissioner Maroš Šefčovič said talks have gained momentum. He described recent meetings with US Trade Secretary Howard Lutnick as “constructive” and announced plans for deeper technical discussions in the coming weeks.
Šefčovič has already traveled to Washington three times in 2025. A fourth meeting with US envoy Jamieson Greer is now being planned, possibly in Brussels or at the next OECD summit.
To break the impasse, the EU has offered to increase imports of US liquefied natural gas (LNG), artificial intelligence technologies, and soybeans. In return, it proposed a zero-tariff agreement on all industrial goods.
However, Jørgensen made clear that the EU will not accept any deal that requires changes to its laws. “Regulatory autonomy is non-negotiable,” he stated. Officials said the EU remains open to compromise but will defend its legislative independence.
EU Threatens Retaliation if No Deal is Reached
If the United States refuses to ease tariffs, the European Union is ready to strike back. Commissioner Šefčovič confirmed that a €95 billion countermeasure list was prepared last week. The list includes a broad range of American products that could face EU tariffs.
EU leaders stress that they cannot accept a long-term trade imbalance. Currently, Washington’s tariffs affect around 70% of EU exports to the United States. This has prompted strong calls for a firm response from both member states and European industry.
Many governments are now lobbying to protect key sectors. France, Spain, and Italy want to exclude American Bourbon whiskey from the EU’s retaliation list to protect their own wine and spirits exports. During the last tariff round, the EU left Bourbon off the list after Trump delayed tariffs for 90 days.
Aerospace Sector Under Pressure
One of the most sensitive areas in the dispute is the aircraft industry. The EU’s draft retaliation package includes US-based Boeing. Member states worry this could trigger fresh US tariffs against Airbus, raising fears of an escalating trade war between two of the world’s largest aerospace giants.
Industry leaders across Europe are watching the negotiations closely. Many are urging both sides to reach a fair and balanced agreement before more damage is done to trade and jobs.
As transatlantic talks continue, the EU remains firm on its key positions: regulatory independence, fair access, and balanced terms. While diplomacy remains the preferred route, European leaders are preparing for every outcome, including retaliation.