Germany and France, which are key economies of the European Union, have expressed dissatisfaction with the new US proposal to resolve the tariff dispute surrounding steel and aluminum. This has led to even greater uncertainty in negotiations, which remain stalled, and the issue of ratifying the trade agreement between the EU and the US is still unresolved.
This is reported by Finway
Controversial changes in US customs policy
The recent changes in American tariffs, affecting hundreds of goods, including steel and aluminum products, were aimed at resolving a long-standing tariff conflict. However, according to sources, Paris and Berlin view these measures as insufficiently beneficial for the EU. They are convinced that for nearly half of the products covered by the new regime, the conditions have even worsened.
The European Commission, for its part, is considering the possibility of implementing mirror measures in response to US actions. Meanwhile, the parties have agreed to continue technical consultations in an attempt to find a compromise solution.
Negotiations on the trade agreement and company reactions
The dispute over tariffs complicates the completion of lengthy negotiations regarding the trade agreement that the parties agreed upon back in July of last year. The document has yet to receive approval from the European Parliament, where lawmakers are demanding additional amendments and guarantees.
The initial draft of the agreement stipulated that the EU would eliminate tariffs on American industrial products, in exchange for the US setting a cap of 15% on most European goods.
In August 2025, the US expanded the 50% tariff on steel and aluminum to hundreds of goods containing these metals. This drew criticism from European partners and accusations of violating recently agreed-upon arrangements. European companies also note the complexity of calculating tariffs, which now depend on the metal content in the final product.
“European lawmakers have twice suspended the ratification of the agreement: first in response to Trump’s threats to annex Greenland, and then after the US Supreme Court invalidated the country’s global tariff regime.”
Despite the tension, the parties have recently shown a willingness to compromise. The US has agreed to review the methodology for calculating the expanded metal tariff and has promised to exempt goods with minimal steel and aluminum content from tariffs. For other products, the rate will be 25%.
The European Commission has informed EU member states that fulfilling all commitments could help secure additional concessions regarding metal tariffs. If the parties do not reach an agreement, the Commission will consider further measures, although their content has not yet been disclosed.
The tariff standoff occurs alongside internal discussions within the EU regarding the improvement of the agreement with the US, particularly concerning its duration and additional guarantees for European producers.