EU and US Restart Trade Talks, But Major Tariff Issues Persist

The European Union and the United States are resuming high-level trade talks in Brussels after a two-month pause — and not all is resolved. Despite a tariff deal reached in July, deep disagreements remain, particularly around steel, aluminium, and key food and drink products.

A Fragile Agreement in Place

In July, the EU and the US agreed to replace previously threatened 50% tariffs with a 15% levy on most EU exports. While this deal provided much-needed clarity, its implementation has proven difficult. US officials, including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, have expressed frustration at what they see as slow progress from the EU.

Key Disputes Still Unresolved

Several critical issues remain on the negotiation table:

1. Steel and Aluminium
   The US continues to apply 50% tariffs on EU steel and aluminium. There’s talk of establishing quota systems, but no agreement has been finalized.
2. Food and Spirits
   The spirits sector — including wine, whisky, and Cognac — remains a major point of contention. The EU is pushing for broader “zero-for-zero” exemptions in these areas.
3. Regulatory Divergences
   Experts highlight deeper systemic tensions. The EU’s regulatory regime — especially in tech — and its value-added tax (VAT) system clash with US demands.

Broader Strategic Talks

Beyond tariffs, the upcoming meetings will explore bigger-picture issues: semiconductor supply chains, defense cooperation, and joint measures to counter Chinese overcapacity. The EU has also ramped up its anti-dumping measures, hoping to persuade the US to scale back its remaining levies.

Risks and Business Concerns

While the July deal was hailed as a breakthrough, its fragility remains a concern. Analysts warn that unclear enforcement and lack of clarity on sectoral carve-outs could spark new tensions.

From the EU’s perspective, internal divisions also loom large. Some member states favor a swift deal to ease economic pressure, while others push back on perceived concessions.

What’s Next

As the two powers reconvene, the clock is ticking. The EU is hopeful that its recent anti-dumping policies and its willingness to discuss strategic exports will encourage reciprocal action from the US.