A brief history of the EU–US trade talks in 2025 – DW – 07/28/2025

DW

6 days ago

As the EU and US finally reach an agreement on trade and tariffs, here's a quick reminder of how they got there.
The announcement echoes US President Donald Trump's previous moves from his first time in office.
The European Union (EU) immediately starts preparing countermeasures on US imports. They specifically target staple American products like bourbon and motorbikes, and were originally planned to target € 26 billion worth of American goods.
The EU keeps insisting that the US tariffs are unjustified. In a statement on March 12, Trade Commissioner Maros Sefcovic said: "EU-US trade relations are currently well balanced, as well as hugely profitable to both sides".
Trump seems particularly triggered by what he calls "a nasty 50% Tariff on Whisky " in a post on his social media site Truth Social. He goes on to call the EU "one of the most hostile and abusive taxing and tariffing authorities in the World".
In a bid to offer some protection to the bloc's metal makers, the EU limits the amount of steel that can be imported to the bloc tariff-free from anywhere, not just the US. Additionally, countries trying to export steel to the EU will no longer be able to use the entire volumes of unused quotas of other countries, including those of Russia and Belarus.
Trump justifies the sweeping tariffs as a response to "a critical threat to US national security."
The decision sparks concern in EU countries with major auto industries, such as Germany. The EU reacts with regret, but Commission President Ursula von der Leyen says the bloc will "continue to seek negotiated solutions."
Donald Trump proclaims April 2nd "Liberation Day" in the US and announces tariff rates for countries around the world, as well as a baseline rate of 10% which goes into effect three days later. The EU is threatened with a 20% blanket tariff, due to take effect on April 9.
The EU calls Trump's move a "major blow to the world economy" and says it's "not too late" for negotiations. Still, von der Leyen says the bloc is preparing a new round of counter-tariffs in response to the latest developments.
Bond market sell-offs appear to spook the US president, and he reverses course.
Counter-tariffs brewed up to respond to US steel and aluminum duties are suspended for 90 days. The suspension is designed to "give negotiations a chance," says Commission chief von der Leyen. "If negotiations are not satisfactory, our countermeasures will kick in."
The EU's next batch of duties is designed to respond to US tariffs on cars and Trump's broader "reciprocal" tariffs. The counter tariffs prepared by the European Commission target close to $100 billion of goods which seem designed to hit Republican heartlands in the US. Targeted goods include soybeans, cigarettes and Boeing aircraft.
The US president prompts shockwaves across Europe again with an online post on his Truth Social platform, hiking the planned tariff rate of 20% to 50%.
"Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025," he writes.
In a post on his Truth social platform, Trump says it was his "privilege" to agree to delay the entry into force of the so-called reciprocal tariffs.
The mood seems better, with von der Leyen speaking of a "good call" with the US president. "Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9," she writes on X.
EU states are split on whether to accept a quicker deal to offer industries some certainty or flex more trade muscle to push for better rates. Germany is seen as more cautious, fearing fallout for its major car industry. France pushes for a tougher approach.
EU officials tell DW and other outlets that they are on the brink of striking a basic deal with the US. The bare-bones agreement would reportedly lock in the 10% baseline tariff rate, with certain exemptions for aircraft and spirits.
But just days later, there's no deal. Instead, Trump says he'll impose 30% tariffs on the bloc come August 1. That's higher than the 20% "Liberation Day" rate announced in April, but lower than the 50% rate threatened back in May.
The EU reacts to Trump's tariff hike threat by delaying its own counter-tariffs until early August. Tariffs that were due to kick in on July 14 are now delayed to leave room for negotiations.
The European Commission shows member states a revised version of the duties first presented to member states back in May. In the two months since the EU's executive proposed the list of goods, some € 20 billion worth of products have been removed from the list after consultations with national governments and industry leaders.
Ahead of the talks in Scotland Trump says there is "a good 50-50 chance" of reaching a deal on trade with the EU.
A single 15% tariff rate has been agreed for most of the EU exports across sectors. The two sides also agreed on zero-for-zero tariffs on certain strategic products, and "will keep working to add more products to this list", says Commission chief Ursula von der Leyen in a statement.
While the EU hopes for "stability", and "predictability," Trump seems satisfied with the negotiations, saying: "It was a very interesting negotiation. I think it's going to be great for both parties."
For now, the trade war has been averted, but whether the truce will hold remains to be seen.