EU-US Trade Talks Stall as Tariff Pause Nears Expiry

European Union negotiators ended two days of meetings in Washington without securing a trade agreement with the United States, EU diplomats said on Friday. The talks will continue through the weekend in an effort to avert the expiry next Wednesday of a 90-day pause on higher U.S. tariffs.

In the absence of a broader accord, Brussels is pushing Washington to extend the tariff suspension, which currently keeps most EU goods at a 10% levy and spares cars, steel and aluminium from steeper duties. Diplomats described the atmosphere as downbeat, noting that any decision ultimately rests with President Donald Trump.

Facing the prospect of renewed duties, the European Commission has trimmed its planned second package of retaliatory measures to €72 billion from an original €95 billion, according to the same officials. EU ambassadors were briefed on three scenarios the U.S. may adopt next week, ranging from maintaining the tariff truce for partners judged to have made sufficient progress, to reinstating country-specific rates of up to 20% where talks lag.

Both sides remain at odds over sectoral carve-outs sought by the EU for industries such as pharmaceuticals, semiconductors and aviation. Diplomats cautioned that, without clarity from Washington in the coming days, the bloc is preparing options to rebalance trade should tariffs snap back.