Trump Escalates Trade Pressures on EU Amid Ongoing Negotiations
US President Donald Trump has increased his demands in EU trade negotiations, pushing for a minimum tariff of 15%-20% on any agreement, according to the Financial Times. The negotiations, which began in early April, are part of Trump’s broader strategy to test the EU’s ‘pain threshold.’
Trump’s administration has introduced a range of tariffs on EU goods, including a 10% tariff on all imports from the bloc, which has been put on hold pending the talks. However, Trump has warned that these duties could rise to 30% if no deal is reached by August 1. These tariffs are in addition to existing sector-specific duties, such as 50% on steel, 25% on car imports, and 25% on aluminum imports.
The Trump administration has made it clear that it is unmoved by EU offers to reduce the 25% car tariffs, insisting that they remain in place. EU Trade Commissioner Maros Sefcovic has provided a ‘downbeat’ assessment of recent discussions with the Americans, according to two diplomats briefed on the matter.
An EU diplomat has told the Financial Times that if Trump insists on 15% to 20% duties, the EU would be forced to retaliate. Brussels has prepared several packages of counter-tariffs, but the implementation of these measures has been delayed until August 1. The diplomat stated, ‘We do not want a trade war, but we do not know if the US will leave us a choice.’
A second EU diplomat emphasized that ‘the mood has clearly changed’ in Brussels in favor of retaliation, adding that ‘we are not going to settle at 15%.’
Meanwhile, the US Treasury reports that Washington has so far largely avoided retaliation for its tariffs, while collecting a record high of $64 billion in customs duties in the second quarter of 2025.