“The United States continues making progress in reciprocal trade negotiations with many willing partners. We have also had frequent consultations with the EU and EU Member State governments on how to work towards a more fair and reciprocal trade relationship,” a USTR official said.
Uphill battle
As the Trump administration celebrated its first trade “deal” last week — an agreement with the U.K. to allow billions in U.S. goods into its market in exchange for lower tariff rates on certain products — one thing became clear: The U.S. intends to maintain a baseline tariff.
That indicates countries will be left to negotiate around the other, sectoral tariffs Trump has introduced, including the 25 percent levies on automobiles, steel and aluminum, with more to come on products like pharmaceuticals, semiconductors, critical minerals and lumber.
The Commission, on the contrary, is seeing greater flexibility on Trump’s 10 percent baseline tariff than on his sectoral duties.
“Our sense is that the U.S. has flexibility on the 10 percent. I would say the [25 percent tariff on cars or metals] seem to be a bit more driven by this perspective of reshoring and reindustrialization where they pursue an industrial policy objective,” a senior Commission official said last week.
Ursula von der Leyen, the Commission president, said last week she would only be willing to meet with Trump if there’s a “concrete” trade package that can be negotiated.
While the diplomatic freeze stresses how little sway the EU holds in Trump’s view, the bloc wants to use it to its own benefit — taking an approach of “strategic patience.”
“No partner of the United States has gone as far down the road in laying out their positions as the EU,” another Commission official said. “On that basis, we won’t be starting from scratch when the Americans are ready for serious talks.”
