Prolonged Trade Negotiation Stalemate Between the EU and USA: Why Is Agreement Delayed?

Chas Pravdy - 17 August 2025 11:35

In the context of recent developments in international trade, the European Union and the United States are still unable to reach a mutual consensus on the signing of a joint statement that would formalize a significant trade deal.

This delay is creating increased tensions and casting doubt on the successful implementation of agreements announced last month.

The core issue lies in disagreements over the wording and interpretation of key terms, especially ‘non-tariff barriers,’ which the US regards as strict EU digital regulations.

The EU insists that these regulations constitute a serious obstacle to digital trade and create uneven conditions for tech giants operating in both markets.In early July, during the summit in Scotland, expectations were high for a swift signing of the agreement.

However, it is now clear that negotiations have become more complicated due to disputes over future changes in digital legislation and tariffs.

Representatives from the EU and US indicate that the final statement is still under discussion, with particular contention regarding plans to reduce tariffs on European cars—an essential sector for the German economy.

While the US promised to slash tariffs from 27.5% to 15%, this has not yet been implemented, as diplomatic and internal procedural hurdles remain.Another factor complicating the signing process involves political timelines.

The Trump administration demands clear deadlines for opening markets to US products and lowering tariffs on industrial goods.

Conversely, the EU emphasizes that internal approval procedures do not allow for rapid ratification — they require time for negotiations and legislative adjustments, posing additional challenges.Negotiations between Brussels and Washington continue, but no concrete signing date has been announced, fueling tension in transatlantic relations and raising concerns about future economic prospects.

It is also notable that the US has already concluded separate agreements with Britain detailing cooperation terms, though their implementation has taken several weeks and involved further negotiations.

Meanwhile, the EU considers its agreement with the US one of the most advantageous signed during Trump’s administration, but long-term implementation and impact remain uncertain due to internal and cross-border complexities.

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