No breakthrough on EU-U.S. trade deal: “black smoke” after marathon talks

After more than five hours of intense negotiations, the European Union’s three main institutions failed to reach an agreement on implementing a landmark trade deal with the United States. The so-called “trilogue” between the European Commission, the European Parliament, and the Council ended without a deal, with talks now postponed until 19 May in Strasbourg.

The stalemate delays ratification of the tariff regulation needed to put into effect the joint declaration signed last July in Turnberry, Scotland, by U.S. President Donald Trump and European Commission President Ursula von der Leyen.

European Trade and Economic Security Commissioner Maroš Šefčovič described the session as a “significant investment of time and energy” that showed “considerable progress.” He stressed the EU’s triple objective: keeping its own promises, ensuring full compliance with the joint declaration, and equipping the Commission with the necessary tools to hold Washington accountable. “Nothing is agreed until everything is agreed,” he added.

Core sticking points

The main obstacles revolve around safeguard clauses introduced by the European Parliament, which several member states are reluctant to accept.

A sunrise clause that would make EU tariff cuts conditional on US compliance.
A sunset clause that would automatically expire the agreement on 31 March 2028, unless renewed.
A suspension mechanism allowing the EU to pause the deal if the US threatens the Union’s essential security interests – including the territorial integrity of member states (an implicit reference to past US comments on Greenland).

France backs the Parliament’s tougher stance, while Germany has opposed some of the more restrictive measures. These divisions among member states prevented a final compromise.

Looming threat of higher U.S. car tariffs

The failure comes at a tense moment in transatlantic relations. President Trump has recently threatened to raise tariffs on European cars to 25%, exceeding the 15% ceiling agreed in the Turnberry declaration for most EU goods.

The threat appears linked to geopolitical frictions. Following comments by German Chancellor Friedrich Merz on the US-Israel military operations against Iran, Trump accused several European countries of failing to contribute to U.S. efforts. He also announced the withdrawal of 5,000 American troops from Germany.

The European Commission responded calmly but firmly. Spokesperson Thomas Regnier said: “This is not the first time we have seen threats.” He emphasised that Brussels remains focused on implementing the agreement while keeping “all options on the table” – including the EU’s powerful anti-coercion instrument – to protect European interests if the US deviates from the joint declaration.

Brando Benifei, Chair of the European Parliament’s delegation for relations with the United States, warned that the EU must prepare countermeasures, including the anti-coercion tool, to deter hostile actions without seeking escalation.

High stakes for both sides

The economic relationship at stake is enormous. In 2024, EU-U.S. trade reached €1.68 trillion – around 30% of global trade. The United States remains the top destination for European goods exports. Any tariff war would hit consumers and businesses on both sides of the Atlantic through higher prices and disrupted supply chains.

The 19 May meeting in Strasbourg will be a critical opportunity to resolve the remaining differences. With Trump’s tariff threats hanging over the process, the pressure on EU institutions to find common ground is mounting.

The original article in Italian of EUalive’s partner FocusEurope.it can be found here.

Caption: The European Parliament during a plenary voting session [European Parliament Multimedia Centre]