Published on
02/06/2025 – 13:27 GMT+2

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Brussels and Washington have little chance of breaking the trade deadlock they have been in since mid-March and the imposition of the first US tariffs on steel and aluminium, Ignacio García Bercero, a former senior EU official and expert of the Bruegel think tank, told Euronews.

“It seems to me very clear that if the US is not ready to take action to substantially mitigate the impact of the tariffs on steel, aluminium and cars. I don’t really see how it is going to be possible to reach any kind of negotiated agreement,” García Bercero said.

“The increase of US tariffs on steel and aluminium from 25% to 50% hardens the position of the US, which is the only country capable of deciding how to end the crisis.”

US President Donald Trump announced last Friday an increase in US tariffs imposed in mid-March on steel and aluminium coming into the country — including EU imports — from 25% to 50%, as of June 4.

Those tariffs come on top of 25% US tariffs on cars and 10% US levies on all EU imports.

However on 28 May, the US Court of International Trade ruled that an emergency law invoked by Trump did not give him unilateral authority to impose the 10% tariffs and ordered an immediate block on them.

The day after, a US court of appeals paused the lower court’s ruling to consider the government’s appeal on 9 June.

But the tariffs of 25% on steel, aluminium and cars were not challenged by the judges as they were grounded on a different law regarding national security.

Several investigations are currently being conducted by the US on the same legal basis into the pharmaceutical, semiconductor and aircraft industries, which could lead to further US tariffs.

“It is very clear that the US has already indicated that it is not ready to do anything on the 10% tariffs, which in any case are being challenged by a US court,” García Bercero said.

“And it now appears that it is not very easy to do anything on the other tariffs which are based on national security – the tariffs targeting steel, aluminium and cars or cars parts,” the former EU official explained.

“Quite frankly, I don’t really see how it is possible to reach any kind of agreement.”

“Therefore the EU need to adopt rebalancing action at least on steel, aluminium, cars and car parts increase,” García Bercero added.

Deadlines coming in fast

The EU has currently suspended until 15 July a first list of US products worth €21 billion to retaliate against US tariffs on steel and aluminium, after Trump decided a 90-day pause in the trade conflict until 9 July.

A second package is under discussion in Brussels until 10 June to target €95 billion worth of US goods in retaliation for the 25% tariff on cars and 10% on EU imports, if negotiations with the US fail.

Further countermeasures on steel and aluminium would need to be adopted by EU member states.

After the negotiation between the EU and the US seemed to kick off 10 days ago, the US president already threatened to impose 50% tariffs on all EU imports.

But a call between Trump and European Commission President Ursula von der Leyen eased the pressure with the promise from both sides to “fast-track” the trade talks. 

Brussels stated that it did not alter its offer in the negotiation, which includes zero-to-zero tariffs on all industrial goods and the purchase of certain strategic US products, such as energy, AI, or agricultural products.

“I’m not optimistic. But it doesn’t mean that it’s not the right tactic to continue to discuss and to see whether or not finally there is a willingness of the US to put something on the table,” García Bercero concluded.