U.S. trade pressure rises as the European Union prepares new tariffs on $113 billion worth of American goods. This marks a sharp escalation in the trade standoff between the two economies.
The EU plans to unveil its proposal to member states this week. Officials will consult for a month before finalizing the list. During this period, they may revise the targets to align with shifting strategies.
President Trump’s tariffs on steel, aluminum, cars, and other goods have fueled the EU’s response. The bloc already imposed levies on $21 billion in U.S. exports. Now, U.S. trade pressure rises again as negotiations stall.
The European Commission has not commented publicly. However, insiders say officials want concrete results. If talks fail, the EU intends to intensify countermeasures and explore broader options, including service restrictions and export limits.
Earlier this year, EU leaders offered to eliminate tariffs on industrial goods, including automobiles. U.S. negotiators dismissed the proposal and focused instead on tech policies, digital taxes, and value-added tax rules. EU leaders argue these policies treat all companies equally.
The U.S. currently imposes tariffs on 70% of EU exports, covering about €380 billion in goods. The EU’s strategy targets political pressure points in the U.S. without harming its own supply chains. That’s why U.S. trade pressure rises as each side hardens its stance.
Brussels also offered to boost U.S. imports of soybeans and liquefied natural gas. Those measures once reduced tensions but failed to fix deeper trade issues.
In 2024, the EU exported €531.6 billion in goods to the U.S., creating a €198.2 billion surplus. But the U.S. holds a surplus in services. That narrows the overall trade gap to just €48 billion, or 3% of total trade.
“This is the time to act clearly and firmly,” said EU trade chief Maros Sefcovic. “We must protect our economy and unity.”
U.S. trade pressure rises as both governments weigh their next steps. The outcome may reshape global trade dynamics.
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