The Financial Times reported on Friday (May 16) that the United States and the European Union have initiated formal trade negotiations, with representatives recently exchanging initial documents outlining key areas of discussion, including tariffs, digital trade, and investment opportunities.
President Donald Trump stated on Friday that the U.S. cannot simultaneously engage in trade talks with multiple countries. He announced that the Treasury and Commerce Departments would notify select trading partners within the next 2–3 weeks regarding unilaterally imposed U.S. tariff rates. Over 150 countries are seeking deals with us, but it's impossible to meet them all. This approach is fair, Trump said.
Tariff Threats and EU Resistance
The U.S. initially planned to impose a 20% "reciprocal tariff" on EU goods but has temporarily halved the rate to 10%, effective until July 8. In a closed-door briefing, Sabine Weyand, the EU's senior trade official, urged member states to remain composed and resist U.S. pressure, warning that Washington may retain certain tariffs—particularly on steel and automotive sectors to revive domestic manufacturing. EU Trade Commissioner Maroš Šefčovič emphasized the bloc's refusal to comply with U.S. demands to abolish value-added taxes (VAT) or weaken regulations targeting major tech firms.
Behind-the-Scenes Warnings
U.S. Trade Representative Katherine Tai reportedly privately cautioned European diplomats about Washington's frustration over the EU's slow progress in advancing negotiations. Tai threatened that if the EU fails to act, the U.S. could reinstate the full 20% reciprocal tariffs and impose additional levies on pharmaceuticals, semiconductors, copper, timber, critical minerals, and aviation parts.
Uncertainty Over Tariff Details
Trump did not specify which countries would receive notifications or have opportunities to negotiate. It remains unclear whether the new tariffs will align with the "reciprocal" rates announced last month or involve adjustments.
A Strategic Shift?
The Guardian noted that Trump's remarks mark his first public acknowledgment that his initial goal—to secure trade deals with multiple nations within a three-month tariff pause—is unrealistic. The move signals a pivot toward imposing tougher terms on select partners, highlighting the administration's limited capacity to manage concurrent multilateral negotiations.
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