The European Union wants a trade deal with the U.S. that sees a larger reduction in tariffs than negotiations with the U.K. and China have so far yielded, officials from the bloc said Thursday.
President Trump imposed a series of tariffs that affect Europe’s makers of automobiles, steel and aluminum. On April 2, he announced a sharp rise in tariffs on all imports from Europe, but a week later reduced the increase to 10% for 90 days to allow for negotiations.
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Last week, the U.S. and the U.K. announced an agreement that left 10% “baseline” tariffs in place on a wide range of British exports to the world’s largest economy. In an agreement announced Monday, the U.S. and China agreed to dial back some recent tariff hikes for 90 days, but left duties above the levels that prevailed before Trump took office.
“I don’t think that’s the level of ambition Europe would be happy with,” said Michal Baranowski, Poland’s deputy economy minister, who is chairing a meeting of EU trade officials in Brussels.
Sweden’s trade minister said the EU should retaliate with higher tariffs on imports from the U.S. if a 10% baseline tariff were to be the final offer from the Trump administration.
“It’s far away from good for trade,” said Benjamin Dousa. “If that’s what’s waiting for Europe, the U.S. can expect countermeasures from our side.”
The Polish official noted that the EU is on day 37 of the 90-day pause, and “has time” to secure the broad deal that it seeks.
“We don’t need a quick deal, we need a good deal,” Baranowski said. “So does America. We have time.”
Officials said negotiations between the European Union and the U.S. are making progress.
“We are seeing some elements of optimism because we are seeing elements of de-escalation on the U.S. side,” said Baranowski. “That’s a good sign that negotiations with the EU are speeding up.”
Also speaking to reporters ahead of the meeting, EU Trade Commissioner Maros Sefcovic said he had a “constructive call” with U.S. Commerce Secretary Howard Lutnick on Wednesday.
“Our aim is to resolve the immediate challenges but also to lay the groundwork for deeper cooperation,” Sefcovic said.
But there is the potential for fresh tension. The U.S. has initiated an investigation of the trade in pharmaceuticals under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs on goods deemed essential for national security.