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U.S. and EU are in a showdown over trade. What does Trump want and what can Europe offer?

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30.05.2025

Top officials at the European Union's executive commission says they're pushing hard for a trade deal with the Trump administration to avoid a 50% tariff on imported goods. Trump had threatened to impose the tariffs on June 1, but has pushed back the deadline to July 9, repeating an oft-used tactic in his trade war.

European negotiators are contending with Trump’s everchanging and unpredictable tariff threats, but “still, they have to come up with something to hopefully pacify him," said Bruce Stokes, visiting senior fellow at the German Marshall Fund of the United States.

Stokes also sees more at play than just a disagreement over trade deficits. Trump’s threats “are rooted in frustration with the EU that has little to do with trade,’’ Stokes said. “He doesn’t like the EU. He doesn’t like Germany."

What exactly does Trump want? What can Europe offer? Here are the key areas where the two side are squaring off.

Over and over, Trump has bemoaned the fact that Europe sells more things to Americans than it buys from Americans. The difference, or the trade deficit in goods, last year was 157 billion euros ($178 billion). But Europe says that when it comes to services — particularly digital services like online advertising and cloud computing — the U.S. sells more than it buys and that lowers the overall trade deficit to 48 billion euros, which is only about 3% of total trade. The European Commission says that means trade is “balanced.”

One way to shift the trade in goods would be for Europe to buy more liquefied natural gas by ship from the U.S. To do so, the EU could cut off the remaining imports of Russian pipeline gas........

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