Key Points:
- EU Trade Commissioner Maroš Šefčovič met US Trade Representative Jamieson Greer to demand a return to the 15% tariff limit.
- The United States currently pushes combined duties up to 30% on certain European goods, violating the original agreement.
- Washington wants Brussels to quickly pass legislation to reduce European tariffs on American industrial products to zero.
- European lawmakers push for a March 2028 sunset clause while France and Germany fiercely disagree on how to handle the deal.
European Union Trade Commissioner Maroš Šefčovič sat down with US Trade Representative Jamieson Greer in Paris on Tuesday. The two officials met right before a highly stressful round of negotiations between European countries kicks off. They spent 90 minutes discussing the struggling trade deal between the two massive economies. Šefčovič used the time to push Washington to actually honor the promises it made to Europe almost a year ago. The transatlantic trade corridor moves billions of dollars’ worth of goods every week, and leaders desperately want to avoid a massive trade war.
Deep tensions surround the implementation of the trade agreement. US President Donald Trump and European Commission President Ursula von der Leyen originally struck the deal in Turnberry, Scotland, in July 2025. Both sides initially celebrated the agreement as a huge win for international business. Now, the deal teeters on the brink of collapse after Trump threatened to impose severe 25% tariffs on European cars.
This new car tariff threat directly violates the core rules of the Turnberry agreement. The original deal clearly stated that the United States would cap all tariffs on European goods at 15%. Things grew even more complicated in February. The US Supreme Court officially declared the previous 2025 tariffs illegal. Instead of backing down, the White House simply introduced a brand new set of tariffs to replace the old ones.
Right now, American trade officials impose an extra 10% tariff on European goods. They stack this new penalty directly on top of older duties that existed before Trump returned to the White House. Because rates vary widely across products, the final cost for European exporters adds up quickly. Combined duties now reach as high as 30% on certain European exports, such as cheese. European dairy farmers rely heavily on American grocery stores to sell their premium cheese. When the US government adds a massive 30% tax, American shoppers stop buying the product.
During the Paris meeting, Šefčovič delivered a clear and firm message to Greer. A spokesperson for the European Commission confirmed that Šefčovič demanded a swift return to the original terms they agreed upon in Scotland. He wants the United States to drop the extra fees and stick to the 15% all-inclusive tariff rate. He also updated Greer on the European Union’s efforts to pass the necessary laws to make the deal work.
Washington has its own list of heavy demands. American officials aggressively push Brussels to speed up its slow legislative process. The United States wants Europe to eliminate its own import taxes rapidly. Under the original agreement, the European Union promised to cut tariffs on American industrial goods to zero. These products include heavy machinery, chemicals, and advanced electronics. Greer made it clear that American factory owners expect to see those zero-tariff promises become reality right away.
However, pushing these laws through the European system proves incredibly difficult. Negotiations between national governments and members of the European Parliament remain incredibly tense. European lawmakers simply do not trust Washington to keep its word. Because the US has already breached the 15% cap, politicians in Brussels want to include strict safeguards in the new laws.
These lawmakers demand that any European tariff cuts remain strictly conditional. If the United States refuses to implement its side of the bargain, Europe will freeze its own zero-tariff policy. The politicians also push hard for a strict sunset clause. This specific rule would automatically terminate the entire trade agreement in March 2028 unless both sides actively vote to renew it.
This tough stance causes massive fights inside the European Union itself. French leaders strongly support the European Parliament. They believe Europe must protect its domestic markets and stand up to American pressure. On the other hand, Germany fiercely opposes these new conditions. German leaders desperately want to protect their massive export economy. Germany relies heavily on the sale of cars and heavy equipment to American buyers. They argue Europe should preserve the original July 2025 agreement exactly as von der Leyen negotiated it.
Time is quickly running out to find a compromise. A crucial round of internal European negotiations begins on Wednesday evening. Officials must figure out how to satisfy American demands for zero tariffs while calming the fears of their own lawmakers. If they fail to reach an agreement, the entire transatlantic trade deal could completely fall apart. Millions of jobs and billions of dollars in international commerce depend on what happens next.
