EU officials have issued a strong warning that ongoing tariffs imposed by the Trump administration could severely damage both the European and American economies.
Trade talks between Brussels and Washington have stalled, with no agreement in sight, raising concerns of prolonged economic strain.
Tariffs and retaliation measures increase pressure
The Trump administration reintroduced tariffs on EU goods, initially setting a 20 percent rate before reducing it to 10 percent for 90 days. However, the 25 percent tariffs on European cars, steel, and aluminum remain. These measures have caused financial stress across key sectors. The EU has held back on planned counter-tariffs worth €21 billion but warned that this pause will not continue without progress.
The European Commission is attempting to maintain space for negotiations, but officials emphasize that time is limited. CNBC reports that current efforts have yet to produce meaningful results, and tensions continue to grow.
Leaders stress urgency and impact of delayed talks
Eurogroup President Pascal Donohoe stated on Wednesday that an agreement is still possible but requires immediate action. Speaking during the IMF and World Bank meetings in Washington, he said both sides must use the time left to find a path forward that avoids further economic damage.
Donohoe noted that a well-structured framework could help prevent new trade penalties and protect both markets from further disruption. Despite his optimism, no progress has been reported, and recent EU decisions to fine tech giants Apple and Meta for antitrust violations have worsened relations with Washington.
Calls for cooperation amid growing trade risks
Spain’s Finance Minister Carlos Cuerpo explained that sustaining the daily UK4.5 billion trade operations between the EU and US stands as a priority. Maintenance of the economic connection stands as a vital priority according to Cuerpo because he considers it a joint resource that must receive protection. Current pressure from US existing tariffs has brought EU officials to demonstrate their readiness for sharing balanced trade terms. Dutch Finance Minister Eelco Heinen echoed these concerns, describing the tariffs as harmful taxes on consumers. He warned that businesses on both sides are delaying investment due to uncertainty, further slowing economic momentum.
Commission officials reject the charge of unfair business advantage by highlighting the €1.6 trillion worth of trade conducted annually between the two economic entities.