Top trade negotiators from the European Union and the United States met in Paris on the sidelines of an OECD meeting to negotiate a settlement for a tense tariff dispute. While progress was reported, a substantive agreement is unlikely to be reached quickly due to complex issues like the US trade deficit, EU's car tax, and US steel/aluminum tariffs. The EU is preparing countermeasures if negotiations fail, while the US continues to express grievances over EU trade practices like the VAT and food safety regulations.
U.S., European representatives meet in Paris to negotiate tariff settlement
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TL;DR: Key points with love ❤️Top trade negotiators from the European Union and the United States met in Paris on the sidelines of an OECD meeting to negotiate a settlement for a tense tariff dispute. While progress was reported, a substantive agreement is unlikely to be reached quickly due to complex issues like the US trade deficit, EU's car tax, and US steel/aluminum tariffs. The EU is preparing countermeasures if negotiations fail, while the US continues to express grievances over EU trade practices like the VAT and food safety regulations.
Trending- 1 2023: US trade deficit with EU reached US$161-billion.
- 2 April (previous year): Trump raised US car import tax to 25%.
- 3 Last week: Trump administration imposed surprise tariffs on steel.
- 4 Monday (previous day): EU announced preparation of 'countermeasures' against the US.
- 5 Wednesday (June 4, 2025): Maroš Šefčovič and Jamieson Greer met in Paris on the sidelines of an OECD meeting.
- 6 Soon: Video conference between Šefčovič and Greer to assess progress.
- Global economic ramifications
- Potential for EU countermeasures against US products/services
- Continued trade tensions
- Unlikely to reach substantive trade agreement quickly
What: US and EU trade negotiators met to discuss and resolve a tense tariff dispute, including issues like the US trade deficit, EU car tax, US steel/aluminum tariffs, and potential EU countermeasures.
When: Wednesday (June 4, 2025), last week (Trump administration's surprise tariffs), Monday (EU preparing countermeasures), April (Trump raised car tariffs), 2023 (US$161-billion trade deficit last year), 60 years (sore point for regulations).
Where: Paris, France (meeting location); Washington (ongoing technical meetings); Brussels (EU location); United States; Europe.
Why: To settle a tense tariff spat with global economic ramifications; US blames unfair trade practices for its trade deficit; EU threatens countermeasures due to US tariffs; US seeks changes to EU trade practices (VAT, food/safety regulations).
How: Through direct negotiations between top trade representatives and ongoing technical meetings; EU proposed a 'zero for zero' deal; EU considering countermeasures; US raised tariffs on steel and aluminum.