European revolt: EU toughens stance on Donald Trump’s tariffs as deadline looms

Trade commissioner Maroš Šefčovič looks stern, determined and confident in his abilities. Let's see how he will look after Trump will make his final decision.
Photo: EPA

European capitals have hardened their position in trade talks with Donald Trump, insisting the US reduces its tariffs on the EU immediately as part of any framework deal before the looming deadline on July 9, ‘Financial Times’ reports.

Trade commissioner Maroš Šefčovič has been instructed to take a tougher line on a trip to Washington this week as Brussels tries to remove or at least substantially cut Trump’s levies in the long term.

Washington has indicated to Brussels that the most likely first-stage agreement is a UK-style phased deal that leaves some tariffs in place while talks continue, according to EU officials.

Ambassadors from EU member states on Monday asked for Šefčovič to insist that any such deal includes, from July 9, reductions in the current 10 per cent “reciprocal” tariff, according to four people briefed on the matter. They are also demanding reductions to higher sectoral levies.

In the UK case, US tariffs on cars and steel continued for some weeks after the initial agreement to allow lower duty or duty-free quotas.

The EU’s 27 members have struggled to display a united front during almost three months of talks. But European Commission president Ursula von der Leyen asked leaders at a summit on Thursday to endorse a tougher stance, according to the people.

All outcomes remained possible, they said, including a collapse in talks, which could result in the US reimposing either the 20 per cent tariff from April or the 50 per cent level threatened in May.

EU companies have, since April, been subject to tariffs on €380bn of annual trade with the US, equivalent to about 70 per cent of the total.

That includes sectoral levies of 25 per cent on cars and their parts and 50 per cent on steel and aluminium.

The US is considering extending those to goods including copper, lumber, aerospace parts, pharmaceuticals, chips and critical minerals.

The EU has voted for retaliatory tariffs on €21bn of US exports but paused them until July 14. The commission is drawing up a new €95bn tariff package.

The White House National Economic Council director Kevin Hassett told Fox News that several agreements would be announced soon after US Independence Day on July 4.

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