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The EU and the US have failed to resolve major trade disputes at a summit meeting in Washington. US President Joe Biden’s consultations with European Commission President Ursula von der Leyen and EU Council President Charles Michel ended on Friday without the two sides reaching a breakthrough on two pressing trade issues.

Dispute has arisen in recent months over, among other things, a US law that provides billions in investments in climate protection and subsidies for American industry. This led to concerns about competitive disadvantages in the EU. At a meeting in Washington in March, Biden and von der Leyen approached each other and agreed to negotiate a deal on minerals for car batteries. It aims to make electric vehicles produced in Europe eligible for US tax credits.

However, a joint statement after Friday’s meeting said only that the two sides had made progress toward such an agreement and looked forward to further progress in the coming weeks.

No solution for special rates

The other dispute concerns special tariffs on steel and aluminum imports, introduced by then US President Donald Trump in 2018. Their impact was severely limited in 2021 by a preliminary agreement between Brussels and Washington. However, it also stipulates that a long-term solution must be found by the end of the year.

Friday’s final statement also only mentioned further progress in the next two months.

Both parties want to give each other more time

The Brussels side cited insufficient accommodation from the US as a reason for the failure of negotiations before the summit. According to diplomats, both sides want to give themselves more time to find compromises. If this fails, special tariffs could again be due on all European steel and aluminum exports to the US in 2024.

The EU will then likely reimpose its special tariffs on American products such as bourbon whiskey, Harley-Davidson motorcycles and jeans. These were introduced in retaliation for Trump’s steel and aluminum tariffs. (sda/dpa)