Since returning to office in January 2025, U.S. President Donald Trump has imposed sweeping tariffs on a wide range of products. These measures have been driven by a desire to address trade imbalances, prevent unfair competition and spur domestic industrial growth. Predictably, Trump’s tariffs have been poorly received by foreign trade partners, many of which rely heavily on free and open trade with the United States.

Among these partners, none has a more significant stake than the European Union. Since the bloc’s establishment, its economy has grown increasingly interconnected with that of the U.S. In 2024, trade between the U.S. and EU reached approximately $1.5 trillion, making it the world’s most valuable bilateral trading relationship.

Soon after Trump’s “liberation day” tariff announcement, the EU entered negotiations on a new trade agreement. After months of uncertainty, the two sides emerged in July with a framework deal in place. According to the terms of the agreement, the U.S. will impose 15% tariffs on a variety of European

goods, including automobiles and auto parts, while granting exceptions to several other categories. However, the U.S. has thus far refused to reduce tariffs on steel and aluminum, which currently stand at 50%. Should this figure stand, it could place considerable pressure on European steel and aluminum

producers.

This question will resolve positively if a major news outlet reports that the United States has agreed to reduce tariffs on imports of European steel and aluminum to 25% or less on or before Dec. 31, 2026.