EU and US trade chiefs head to Paris for high-stakes tariff talks

The EU and US are facing their biggest trade clash in years as leaders meet in Paris this week to prevent a tariff war after President Trump doubled metals duties and set a July 9 deadline for steep new tariffs on European goods.

Talks between EU trade commissioner Maroš Šefčovič and US Trade Representative Jamieson Greer are taking place during the OECD summit in Paris amid rising tension over trade policy.

Trump doubles tariffs as EU negotiators weigh response

US President Donald Trump signed a new directive that raises tariffs on European steel and aluminum from 25% to 50% as part of his “reciprocal duties” set to take effect across a wide range of EU exports beginning July 9 unless both sides reach an agreement.

Tensions are rising for European companies as most EU exports to the US already face a 10% tariff, while products like cars and auto parts are taxed even higher at 25%.

The EU has paused its €21 billion plan to hit back with tariffs on major US goods like motorcycles, wheat, maize, and clothing to avoid a full trade war. European leaders want to create room for negotiations during the high-level meetings in Paris between EU trade commissioner Maroš Šefčovič and US trade representative Jamieson Greer.

However, three EU diplomats familiar with the talks say the bloc has already offered several trade concessions to ease tensions. Still, the US hasn’t responded clearly or shown signs of dropping the new tariffs.

However, EU officials have already made a new list of US goods worth up to €95 billion that could face tariffs if talks fail or if the US keeps ignoring European concerns. This includes American exports like Boeing airplanes, American-made cars, and bourbon whiskey.

EU trade spokesperson Olof Gill warned that the latest US tariff increase “hurts our efforts to find a negotiated solution” and damages trust between allies who should work together, not compete unfairly.

Time is running out fast, and if the two parties can’t find common ground, Trump’s new 50% tariffs will start on July 9, while the EU’s paused €21 billion counter-tariffs will automatically begin on July 14.

EU officials have said they might start these measures sooner if the situation gets worse. The rising tension is already hitting financial markets and global trade forecasts as businesses worry about higher costs, slower shipping, and big problems in the supply chains between Europe and the United States.

Some analysts say this dispute could hurt economic recovery for a long time and cause a lasting trade break between two of the world’s biggest economies if talks don’t move fast.

EU and US hold talks in Paris as pressure builds

EU Trade Commissioner Maroš Šefčovič and US Trade Representative Jamieson Greer will meet today in Paris during the OECD ministerial summit to try and ease the rising trade tensions and avoid further escalation before critical deadlines.

However, neither side made any public statements before the meeting. EU officials confirmed they had not received any formal “best offer” letter from the US outlining proposals to end the dispute.

The silence shows how sensitive and fragile the talks have become with time running out and both sides facing losses if there’s no deal. While Šefčovič and Greer meet face-to-face in Paris, technical teams from both sides also talk in Washington to work through issues to help leaders find common ground.

The EU is also handling a bigger trade plan with China to address tensions with Beijing. 

Šefčovič met with Chinese Commerce Minister Wang Wentao to reduce friction between Brussels and Beijing after the EU introduced new restrictions that limit Chinese medical device manufacturers from competing in public procurement contracts across Europe.

Beijing angrily accused the EU of unfair protectionism, and both sides agreed to keep talking ahead of the upcoming EU-China summit, even though the current mood is tense. The EU’s efforts to handle disputes with both the US and China show how complex global trade has become, with one relationship affecting the other and shaping how talks move forward.

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