Next week, the EU and the US will resume trade negotiations after a two-month break, aiming to resolve remaining disagreements over their contentious tariff agreement from July.
US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are scheduled for high-level meetings in Brussels on Monday with ministers, EU commissioners, and industry leaders. These will be the first in-person talks since the six-week US government shutdown that started in early October. In a bold step, Lutnick and Greer have been invited to lunch with 27 trade ministers attending a summit that day.
An insider emphasized the need to stay focused, saying, “We don’t want individual countries approaching them to demand separate deals on various issues.”
In July, Brussels reached an agreement with Donald Trump at his Scottish golf course to avoid his threat of 50% tariffs, settling instead for a baseline 15% duty on most EU imports to the US. However, US officials have expressed frustration with the EU’s slow progress in implementing the deal, which isn’t legally binding and requires parliamentary approval—a process that might not conclude until February.
Key topics for Monday’s discussions include the ongoing 50% tariffs on steel and aluminum, additional tariffs on products containing steel, and levies on food and drinks. Several EU countries, such as France (affected by Cognac duties), Ireland (whiskey), and wine-producing nations, are pushing for the removal of the 15% tax on wine and spirits.
Before a dinner on Monday evening, Lutnick and Greer will meet with EU Trade Commissioner Maroš Šefčovič, Defence Commissioner Andrius Kubilius, and Technology Commissioner Henna Virkkunen to address the ongoing chip supply crisis involving China.
Insiders also mentioned that the US officials will join a business roundtable with industry leaders, including the heads of Volkswagen and TotalEnergies.
An EU insider stated that convincing the US that steel derivative tariffs violate the spirit of the July agreement is a “top priority.” In September, the US identified 407 products with steel components—from knitting needles to wind turbines and washing machines—subject to separate tariffs. Now, as part of an ongoing effort to protect domestic industries, it is considering adding another 700 items, such as tin cans and bicycles.
Companies like Germany’s Krone have raised concerns about these “hidden” tariffs, describing them as alarming and creating a nightmare for exporters. US customs officials have imposed 200% tariffs on those who fail to provide extensive documentation tracing the origin of all steel, including from multiple supplier levels.
Additionally, the EU and US will explore collaborating to shield their domestic steel industries from cheaper Chinese imports. Brussels hopes that its October anti-dumping proposals, which align with Trump’s steel tariffs, will encourage the US president to reduce the 50% tariffs on EU steel.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about the resumption of EUUS trade negotiations
Beginner General Questions
1 What are these trade negotiations between the EU and US all about
In simple terms the EU and US are trying to work out a deal to make trade between them easier and cheaper by reducing or removing taxes on imported goods and aligning regulations
2 Why are they talking again I thought they had a deal
They did reach a temporary truce in July to pause a trade war but they didnt solve all the underlying problems The negotiations are resuming now to try and find permanent solutions to those lingering issues
3 What is a tariff and how does it affect me
A tariff is a tax that a government puts on goods imported from another country If tariffs are high the products you buy from that country can become more expensive
4 What are the main benefits of a good trade deal for regular people
The main benefits for consumers are lower prices on imported goods more product choices and potentially stronger protections for the environment and workers rights
Specific Issues Problems
5 What were the unresolved issues from the July agreement
The main unresolved issues are
Steel and Aluminum Tariffs The US had imposed tariffs on EU metals and the EU retaliated with tariffs on American products like whiskey and motorcycles The truce paused these but a longterm solution is needed
The Green Subsidies Dispute The USs Inflation Reduction Act offers massive subsidies for Americanmade green technology which EU companies see as unfair competition that hurts their industries
6 What is the Inflation Reduction Act and why is the EU concerned about it
Its a major US law that provides tax credits and subsidies for clean energy The EU is concerned because these benefits are often only for products made in North America which could put European companies at a disadvantage and lure their factories to the US
7 Could these negotiations fail and lead to a trade war
Yes thats a risk If the negotiations break down both sides could reimpose the tariffs they paused leading to higher costs for businesses and consumers on both sides of the Atlantic This
