European Union trade negotiators have warned member governments that Washington’s new “reciprocal” tariffs are likely to stick, meaning deeper concessions may be the only route to avoid a full-scale trade war with the United States.
Senior officials briefed national capitals, telling them that President Donald Trump’s 10% tariff on almost all imported goods will probably remain in place for the long term. The European Commission still hopes to shave the rate, but it no longer believes it can scrap the duty altogether.
Brussels had expected that market pressure would soften the White House’s stance, yet that shift has not happened. Commission staff now describe two unappealing paths: grant wider concessions or brace for retaliation.
During a call on Sunday with Commission President Ursula von der Leyen, Trump agreed to delay his threat to slap 50% tariffs on a wide range of products. The deadline for those measures moved from 1 June to 9 July. Even so, officials say the 10% tariffs already in force — covering about 70 per cent of EU exports, or €380 billion — have been declared “non-negotiable” by Washington.
On Monday, Björn Seibert, chief of staff to von der Leyen, gave EU ambassadors an assessment of the negotiations. Accepting the US position as a starting point, Seibert outlined a possible deal similar to the one reached by the United Kingdom.
A possible deal may involve offering the White House lower tariffs or duty-free quotas for sensitive exports such as cars, which have faced 25% tariffs on grounds of national security. Trump has warned that semiconductors, medicines, and other products could have similar tariffs imposed.
“We have to try to do better than that,” one EU diplomat said after the meeting. Yet the envoy conceded that going beyond would likely require the bloc to threaten countermeasures against the US. “Trump doesn’t have the slightest interest in a negotiated solution. He wants us to capitulate or face punitive tariffs,” the diplomat added.
According to three officials present, France was the lone voice in the room, firmly rejecting unilateral concessions and accepting a permanent 10% tariff rate.
Other governments have adopted similar positions in earlier rounds, but most stopped short of speaking out on Monday.
Pressure to loosen regulations is coming from some EU capitals
Brussels is also preparing to offer regulatory changes. Officials plan to widen an ongoing drive to cut red tape for companies, presenting it as an extra benefit for US businesses. Diplomats said it was unclear whether Seibert meant to increase the scope of deregulation or present the existing measures.
The leaders of France and Germany have urged the commission to repeal a directive that obliges big companies to track emissions and labour standards among their suppliers, a measure long criticised in Washington.
A separate plan to restrict goods linked to deforested land may be relaxed for “low-risk” countries, including the United States.
Italian Prime Minister Giorgia Meloni, who has spoken publicly against any new tariffs, has become a key player in the debate. The nationalist leader had a phone call with Trump, with whom she has longstanding ties, and persuaded him to accept von der Leyen’s call last weekend.
Rome still hoped that both sides would eliminate duties on all industrial goods and some farm products, but ambassadors were told that the White House showed no interest in that goal. Instead, officials say the EU could lower some import tariffs on its own.
American negotiators have also put down other demands on the table: the removal of digital taxes and value-added tax on certain items, and changes to food-safety rules to open the EU market to more US produce.
Seibert stressed that the bloc must be ready to hit back if talks are not successful. During the current negotiations, the EU has paused a €21 billion package of tariffs of up to 50% on US exports such as maize, wheat, motorcycles, and clothing. These measures were initially drafted in response to Trump’s steel duties.
The commission is now asking member states for views on an additional €95 billion list targeting Boeing aircraft, cars, bourbon whiskey, and other goods.
Some governments argue that the White House’s stance could still be shifted. “It’s not politically feasible to settle for 10 per cent tariffs without taking any measures ourselves. Businesses and citizens would not accept it,” a second EU diplomat said.
KEY Difference Wire helps crypto brands break through and dominate headlines fast