The tit-for-tat tax dispute between the US and the European Union is being resolved by the EU. Private sources told Bloomberg that it earlier this week discussed trade proposals with Washington that included plans for reciprocal investment and procurement in the fields of artificial intelligence, modern connectivity, and other fields.
Additionally, the report recommends working together to address overcapacity problems in supply stores for semiconductors, as well as metallic, pharmaceuticals, and electrical products, by gently removing tariffs on both sides for some agricultural and industrial goods. It considers US interests like workers ‘ freedom,  , environmental standards, and financial stability.
According to the options, the EU wants to reach a mutually beneficial agreement with the US, but authorities are unsure whether US President Trump shares those objectives. Authorities have been telling their American counterparts that the two markets are significantly intertwined, and that coming to a package should be a shared goal, according to Bloomberg.
According to the sources, proper discussions have not yet begun because the European Commission would probably need a member state mandate to do so. But, by submitting the report, the EU is indicating that it is willing to work together. In addition, the EU is thinking about punitive measures in the event of a successful agreement. According to the resources, discussions regarding the plan are continued, and the two countries will join in the first few days of June.
How far along is the US-EU business war timeframe?
Trump has been threatening to impose levies on the EU since his second term as president, criticizing its car, oil, and gas industry deficit, but the conflict finally broke out in March of this year.
- On March 12, 2025, the US’s increased tariffs on steel and aluminum imports became effective, both set at 25 %. The US threatened US measures that included beer and various agricultural and industrial products the same day.
- In a social media statement issued on March 13, 2025, the US president threatened 200 % tariffs on EU beer.
- The EU lowered its drinking tariffs on March 20, 2025, and delayed them until mid-April.
- March 27, 2025: The US imposed a 25 % tariff on global imports of cars, causing a disproportionate impact on Germany, the world’s largest automotive exporter.
- President Trump imposed sweeping “reciprocal taxes” on all exports from the EU on April 2, 2025.
- April 9, 2025: The EU set up 25 % punitive tariffs that would affect US products worth$ 21 billion, and they were scheduled to go into effect on April 15. Trump made a 90-day expulsion of the mutual tariffs, temporarily lowering the 20 % tariff on EU exports to 10 %.
- The EU will suspend its deterrent plans for 90 days on April 10, 2025, in order to try to reach a deal contract during the pause.
Trump has stated that he will reinstate mutual taxes on semiconductors and pharmaceuticals and has threatened to impose more tariffs on industries like the film industry as part of the ongoing negotiations. In the event that these actions are taken, many EU member states have urged the Commission to take retaliation.
A list of US goods worth €95 billion that had face tariffs if talks don’t work was proposed by the EU on May 8. This list includes items like cars, trucks, electronic equipment, alcohol, fish, compounds, and other important imports. Washington has entered agreements with China and the UK this quarter, which suggests that Trump is available to bargain, but, according to Bloomberg, the EU has no intention of ratifying words like those offered to other nations.
According to Bloomberg, the Trump presidency has been negotiating with the EU’s executive branch. Nevertheless, an EU official criticized it for targeting non-negotiable areas like the bloc’s online laws and described it as a “wishlist” of unrealistic expectations.
Trump has previously criticized the EU for its repressive attitude toward Apple, Google, Meta, and other US software companies. He claimed at the World Economic Forum in January that” they’re British companies, and they shouldn’t be doing that” and that “it’s a form of taxation,” while Vice President JD Vance decried Europe’s use of “excessive rules” at the Paris AI Summit in February.
