US-EU Trade Negotiations Hit a Rough Patch Amid US Demands

Trade negotiations between the US and the EU have entered challenging territory as Washington seeks concessions that Brussels deems ‘unbalanced’ and ‘one-sided.’ According to European sources cited by Bloomberg, while an agreement by the July 9 deadline remains possible, the more realistic scenario is an interim principles agreement to keep talks ongoing. Among US demands are quotas for fish exports that may violate WTO rules, unilateral tariff changes, and economic security requirements viewed as excessive by the EU. Despite negotiation efforts, tariffs imposed by Donald Trump already cover 70% of European exports to the US—worth approximately €380 billion—and could rise to 50% for all exports starting July 9. The Trump administration reportedly plans to maintain these tariffs even if an agreement is reached. In this context, the Commission is assessing the level of asymmetry it can accept while keeping a €95 billion countermeasures package on the table targeting American products. However, tough negotiations are also expected within the EU, with some member states favoring a softer stance. Meanwhile, Trump reiterated his dissatisfaction with EU trade practices during the G7 summit in Canada, accusing the bloc of distorting trade against American car manufacturers. Ursula von der Leyen confirmed the EU retains all its response tools, while Commissioner Márkos Šefčovič intensifies discussions with the US Trade Representative and Commerce Secretary. On the negotiating table are sectors like metals, automotive, semiconductors, pharmaceuticals, and civil aircraft. The EU proposes gradual tariff elimination for non-sensitive industrial and agricultural goods, along with reducing non-tariff barriers through regulatory simplification. However, the key challenge remains securing an agreement at minimal cost for Europe without compromising its fiscal and regulatory autonomy—a red line for Brussels. If this proves unattainable, retaliatory measures are now seen not just as likely but as an expected outcome.