EU Gains Upper Hand in U.S. Trade Talks Amid Legal Uncertainty

The European Union has strengthened its position in ongoing trade negotiations with the United States after a U.S. court cast doubt on the legality of President Donald Trump's 'reciprocal' tariffs, according to EU officials.

Despite the legal uncertainties, the European Commission reaffirmed its commitment to zero tariffs on industrial goods, with negotiations set to proceed next week during the OECD Ministerial Council Meeting in Paris. EU Trade Commissioner Maros Sefcovic emphasized the importance of maintaining communication with U.S. Commerce Secretary Howard Lutnick to seek forward-looking solutions.

EU officials highlighted the opportunity presented by the court's ruling to address other trade issues, while maintaining that Europe's taxation systems and food safety standards remain non-negotiable. The unpredictability of U.S. tariff policies is seen as enhancing Europe's image as a stable business environment.

(With inputs from agencies.)