US Seeks Significant Concessions on EU Trade Deal
Two Sides Prepare to Negotiate Next Steps of Summer’s Agreement
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European Union officials see new U.S. demands for concessions as well as other measures as potentially undercutting a recent agreement that brought the allies back from the brink of a trade war.
Earlier this month, President Donald Trump’s administration sent the EU a fresh proposal for implementing “reciprocal, fair and balanced” trade, according to people familiar with the matter, who spoke on the condition of anonymity to discuss private deliberations.
EU officials view the requests as maximalist and the concessions as significant, some of the people said. The people declined to disclose specifics on the U.S. demands because member states are due to be briefed on the discussions on Oct. 10.
The new demands come as the two sides prepare to negotiate the next steps of this summer’s trade deal, which set a 15% tariff on most EU goods entering the U.S.
EU Is the Biggest Source of US Imports
Steel is crucial for the EU economy.
To protect the sector from unfair global overcapacity and to ensure its long-term viability, we propose:
🔹Limiting tariff-free import volumes
🔹Doubling the level of out-of-quota duty to 50%
🔹Strengthening steel market traceability
↓ — European Commission (@EU_Commission)
The U.S. has been seeking an opening to discuss the bloc’s legislation, including digital and technology rules as well as corporate compliance and climate-related regulations, the people said. The EU has repeatedly said that maintaining regulatory autonomy is a red line, but that it will consult with the U.S. on each subject.
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“We are currently focused on the faithful implementation of the EU–U.S. joint statement, which is essential to preserving our unmatched transatlantic trade, protecting businesses and safeguarding jobs,” European Commission Spokesman Olof Gill said when asked for a comment on the U.S. demands. “The statement is our basis for joint strategic cooperation.”
The White House didn’t immediately respond to a request for comment sent outside of normal business hours.
The euro extended a small drop against the dollar before paring the move, and German bonds held gains. The currency was about 0.2% lower versus the dollar at $1.1630 at 11:45 a.m. London, while the 10-year bond yield was three basis points lower at 2.68%.
Both sides have taken several steps to implement the trade accord in recent months.
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The Trump administration confirmed that European cars benefit from the 15% rate rather than the higher 25% sectoral duty it imposes on others. Pharmaceutical exports are expected to receive the same treatment.
In return, the EU has presented legislation to lower tariffs on U.S. industrial goods and some non-sensitive agricultural exports. The move needs backing from the European Parliament, which must also green light the overall trade deal.
However, discussions to cut the 50% U.S. tariffs on steel and aluminum have made little progress. The bloc announced this week that it plans to introduce the same rate on foreign steel imports above a certain quota.
