US and Europe trade negotiators discuss tariffs in Paris
[June 04, 2025] By
CATHERINE GASCHKA, SAM McNEIL and PAUL WISEMAN
PARIS (AP) — Europe and the United States are meeting in Paris to
negotiate a settlement of a tense tariff spat with global economic
ramifications between two global economic powerhouses.
The European Union’s top trade negotiator, Maroš Šefčovič, met Wednesday
with his American counterpart, U.S. Trade Representative Jamieson Greer,
on the sidelines of a meeting of the Organization for Economic
Cooperation and Development.
“We’re advancing in the right direction at pace — and staying in close
contact to maintain the momentum,” Šefčovič posted on social media
platform X alongside a photo of him shaking hands with Greer.
Brussels and Washington are unlikely to reach a substantive trade
agreement in Paris. The issues dividing them are too difficult to
resolve quickly.
President Donald Trump regularly fumes about America’s persistent trade
deficit with the European Union, which was a record $161 billion last
year, according to the U.S. Commerce Department.
Trump blames the gap between what the U.S. sells and what it buys from
Europe on unfair trade practices and often singles out for criticism the
EU’s 10% tax on imported cars. America’s was 2.5% until Trump raised it
to 25% in April. The EU has argued its purchases of U.S. services,
especially in the technology sector, all but overcome the deficit.
After the Trump administration’s surprise tariffs last week on steel
rattled global markets and complicated the ongoing, wider tariff
negotiations between Brussels and Washington, the EU on Monday said it
is preparing “countermeasures” against the U.S.
The EU has offered the U.S. a “zero for zero” deal in which both sides
end tariffs on industrial goods, including autos. Trump has rejected
that idea, but EU officials say it’s still on the table.
The EU could buy more liquefied natural gas and defense items from the
U.S., and lower duties on cars, but it isn’t likely to budge on calls to
scrap the value added tax, which is akin to a sales tax, or open up the
EU to American beef.
“We still have a few weeks to have this discussion and negotiation,"
French trade minister Laurent Saint-Martin said in Paris on Wednesday
ahead of the OECD meeting. “If the discussion and negotiation do not
succeed, Europe is capable of having countermeasures on American
products and services as well."
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The "Cosco Shipping France" container ship is moored at the Long
Beach Container Terminal, LBCT, at Middle Harbor in the Port of Long
Beach, Calif., , April 15, 2025. (AP Photo/Damian Dovarganes, File)
 Greta Peisch, who was general
counsel for the U.S. trade representative in the Biden
administration, said the zero-for-zero proposal could provide a way
to make progress if the Trump administration “is looking for a
reason not to impose tariffs on the EU.’’
But Peisch, now a partner at the Wiley Rein law firm, wondered: “How
motivated is the U.S. to come to a deal with the EU?’’ Trump, after
all, has longstanding grievances complaints about EU trade
practices.
One target of his ire is the value-added tax, similar to U.S. state
sales taxes.
Trump and his advisers consider VATs unfair protectionism because
they are levied on U.S. products. But VATs are set at a national
level, not by the EU, and apply to domestic and imported products
alike, so they have not traditionally been considered a trade
barrier. There is little chance governments will overhaul their tax
systems to appease Trump.
Likewise, the Europeans are likely to balk at U.S. demands to scrap
food and safety regulations that Washington views as trade barriers.
These include bans on hormone-raised beef, chlorinated chicken and
genetically modified foods.
“When you start talking about chickens or GMOs or automobile safety
standards, you’re talking about the ways countries choose to
regulate their economies,” Reinsch said. “We think that’s
protectionist. They think it’s keeping their citizens healthy ...
It’s been a sore point for 60 years.’’
___
McNeil reported from Barcelona and Wiseman reported from Washington,
D.C.
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