EU to Focus on Critical Sectors in Bid to Avoid Trump’s Tariffs

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EU to Focus on Critical Sectors in Bid to Avoid Trump’s Tariffs.

general :: 2025-05-27 :: source - bloomberg

By Alberto Nardelli and Jorge Valero

(Bloomberg) — The European Union is seeking to accelerate trade talks with the US just six weeks before President Donald Trump’s threatened 50% tariffs come into effect.

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The European Commission, which handles trade matters for the EU, will focus its new strategy on critical sectors as well as tariff and non-tariff barriers, according to people familiar with the plans. The commission will also link its approach to addressing regulatory barriers with its plans to simplify rules.

The EU’s trade chief, Maros Sefcovic, will lead political negotiations on industries such as steel and aluminum, automobiles, pharmaceuticals, semiconductors and civilian aircraft, said the people, who spoke on the condition of anonymity. Those talks will happen in parallel with the technical discussions on tariffs and non-tariff barriers.

Last week, Trump threatened to impose a 50% tariff on the EU starting June 1 after complaining the bloc was slow-walking negotiations and unfairly targeting US companies with lawsuits and regulations. But the US president extended the deadline back to July 9 after a Sunday call with Commission President Ursula von der Leyen when she agreed to fast-track talks.

A spokesperson for the commission declined to comment.

Member states were briefed on the discussions on Monday after Sefcovic held a call with his US counterparts, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, according to the people.

The industries that Sefcovic will focus on either have already been hit with US tariffs, or have been earmarked for future levies. The EU has proposed deepening cooperation with the US in those sectors as part of a previous proposal shared with the US last week, Bloomberg reported.

The EU offer last week — which also proposed mutually lowering tariffs on many goods and working together on global challenges as well as mutual investments and strategic purchases — were rejected by the US and triggered Trump’s threat of higher tariffs.

Any US unilateral demands that would impair the bloc’s autonomy in regulatory and tax matters are likely to remain red lines, the people said.

Talks so far have been beset with a multiple problems, with no clear path to finding a middle ground. The Europeans have complained that it’s not clear what the US wants or even who speaks for the American president, and the US has said the EU unfairly targets US companies with lawsuits and regulations.

In parallel to ongoing talks with the Trump administration, the EU will continue to prepare countermeasures should negotiations fail to yield a satisfactory outcome, the people said.

The EU has approved tariffs on €21 billion ($23.8 billion) of US goods in response to Trump’s metals levies that can be quickly implemented. They target politically sensitive American states and include products such as soybeans from Louisiana, home to House Speaker Mike Johnson, as well as agricultural products, poultry and motorcycles.

The bloc is also preparing an additional list of tariffs on €95 billion of American products. Those measures, which are in response to Trump’s “reciprocal” levies and automotive duties would target industrial goods including Boeing Co. (BA) aircraft, US-made cars and bourbon.

The EU has been urged by some member states to additionally prepare countermeasures to any further action the US president has threatened, including on semiconductors and the pharmaceutical sector.

Many EU officials and member states continue to believe that several of Trump’s tariffs will stay in place and the chances of a good deal remain slim, the people added.

“We want a quick solution now,” German Finance Minister Lars Klingbeil told reporters in Berlin Monday. He added that he was “cautiously optimistic” that an agreement could be found, without elaborating. Klingbeil said the EU must respond to tariff threats from the US in a united, coordinated and consistent manner.

—With assistance from Michael Nienaber.