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EU Alarmed by New U.S. Trade Demands That Could Threaten Recent Tariff Deal

EU Alarmed by New U.S. Trade Demands That Could Threaten Recent Tariff Deal

European officials are growing uneasy after the United States introduced fresh demands that could unravel the fragile trade truce struck between the two sides earlier this year.

According to people familiar with the discussions, the Trump administration recently sent the European Union a new proposal outlining what it called a framework for “reciprocal, fair, and balanced” trade. EU negotiators, however, view the request as overly aggressive and potentially destabilizing to the accord that helped avert a renewed trade war.

Fresh Demands and Old Tensions

The new U.S. approach comes as Washington and Brussels prepare to negotiate the next phase of their summer agreement, which set a 15% tariff on most EU exports to the United States. American officials are reportedly seeking broader discussions on the EU’s digital regulations, corporate compliance rules, and climate-related standards—areas that Brussels considers untouchable.

EU diplomats fear that Washington’s push could be an attempt to reopen settled issues and gain leverage in sectors outside of tariffs. “Regulatory autonomy remains a red line,” one EU official said privately, noting that the bloc is willing to consult but not compromise on core legal frameworks.

A Deal in the Balance

The trade pact, signed after months of escalating tension, provided crucial breathing room for European industries. It allowed automakers and pharmaceutical exporters to benefit from the 15% rate instead of the much steeper 25% and 50% sectoral tariffs imposed on other nations. In return, Brussels agreed to lower duties on U.S. industrial goods and certain agricultural imports – legislation that still awaits European Parliament approval.

But progress on reducing tariffs for steel and aluminum has stalled. The EU recently announced plans to introduce equivalent 50% duties on foreign steel exceeding quota limits, a move seen as both retaliation and protection.

Meanwhile, U.S. officials have resisted expanding tariff exemptions to include high-value European exports such as wine, spirits, and medical technology, according to sources briefed on the matter.

Stability at Stake

Compounding EU concerns are reports that the U.S. is considering adding more steel and aluminum derivatives to its 50% tariff list – potentially undermining the spirit of the summer deal. The fear in Brussels is that these piecemeal actions could erode the agreement’s core promise of predictable trade relations.

“The key argument in favor of this deal was stability,” said EU Industry Commissioner Stéphane Séjourné. “If that stability is compromised, it becomes harder to call this agreement a success.”

EU member states are expected to receive a full briefing on the U.S. proposal this week, as officials seek guidance on whether to confront Washington or attempt to preserve the uneasy balance.

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Reporter at Coindoo

Krasimir Rusev is a journalist with many years of experience in covering cryptocurrencies and financial markets. He specializes in analysis, news, and forecasts for digital assets, providing readers with in-depth and reliable information on the latest market trends. His expertise and professionalism make him a valuable source of information for investors, traders, and anyone who follows the dynamics of the crypto world.

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