EU-US Trade Tensions Escalate

Trade relations between the European Union and the United States are entering a critical phase, as ongoing negotiations remain overshadowed by looming tariffs and political uncertainty. Speaking at a press conference, Bernd Lange (S&D, DE), Chair of the European Parliament’s International Trade Committee, described the current climate as tense and marked by “unjustified” US tariffs that continue to affect key EU exports.

An investigation under Section 232 of the US Trade Act is still underway for seven product categories, including semiconductors, pharmaceuticals, and trucks, with additional tariffs expected imminently. Most notably, a 50% US tariff on copper imports is anticipated within days, triggering deep concern among EU policymakers.

In response, the EU is preparing a set of countermeasures scheduled to take effect on 14 July. These include targeted tariffs on American goods, possibly on metal scrap exports (a commodity the US imports from the EU) and broader measures, such as a potential turnover-based levy to finance enforcement actions. “This is not a friendly exercise,” Lange noted, referring to the aggressive tone of recent communications from the US administration. “It’s a show of power, not partnership.”

The EU’s goal remains to avoid escalation by reaching a framework agreement that would pave the way for sector-specific negotiations. According to Lange, there is room for progress on steel and automotive tariffs, as well as a strong possibility of exemptions for aircraft components and alcohol from the proposed 10% baseline US tariff.

However, two major concerns remain unresolved. First, there has been no US commitment to temporarily reduce tariffs during negotiations, despite EU requests. Second, the EU is seeking a “still clause”, a final provision guaranteeing that the terms of any agreement won’t be altered unilaterally by the US after ratification. So far, Washington has not granted this assurance.

The European Parliament plenary also took up the issue on 9 July, with a wide-ranging debate on the state of EU-US trade relations. While many speakers stressed the need to de-escalate tensions and avoid a trade war, there was also a strong current of concern over the broader implications for European sovereignty,  particularly in the digital space. Several MEPs called for a firmer EU stance against the influence of large US tech companies, urging renewed efforts to advance digital taxation and protect the integrity of European regulatory standards.

The tone of the debate reflected a Parliament highly aware of the political stakes, with members emphasizing that transatlantic cooperation must be grounded in mutual respect, fairness, and democratic accountability. As the deadline for EU countermeasures draws near, the pressure is on both sides to find a path toward stability, before temporary tariffs become lasting fractures.