EU discussing steel, chip, plane cooperation with US, trade chief says

by Reuters May 28, 2025

The European Commission is discussing with the United States possible cooperation in sectors such as aerospace, steel, semiconductors and critical minerals, European Trade Commissioner Maros Sefcovic said on Wednesday.

Sefcovic, in Dubai to launch free trade agreement negotiations with the United Arab Emirates, said he was talking to U.S. counterparts every other day in search of a deal to limit tariffs, with another call due on Thursday.

"What we are looking at first and foremost are all the tariff lines, what we can do there, how can we look from this new perspective for the market access?" he told a press conference.

Maros Sefcovic, the nominee to become the European Union's trade and economic commissioner, smiles at the camera as he attends confirmation hearing before the European Parliament's international trade and constitutional affairs committees, in Brussels, Belgium November 4, 2024. REUTERS/Johanna Geron

Sefcovic said he was discussing with U.S. Secretary Howard Lutnick areas of possible transatlantic cooperation that would benefit both sides, naming aviation, semiconductors, steel and dependencies, notably for critical minerals.

"I'm absolutely convinced that the two largest trading partners on this planet ... just simply have to look for the best possible frame for trade, for investment," he said.

"And this is what we are currently working on. The intensity is great and I hope that this will bring us the results for the fair and balanced deal in the end," he said.

The European Commission, which oversees trade policy for the 27-nation EU, said it saw new impetus in trade talks with the United States this week after President Donald Trump dropped his threat to impose 50% tariffs on EU imports.

That followed Trump's call with Commission chief Ursula von der Leyen in which they agreed to fast track talks.

The EU wants to see an end to 25% tariffs on steel and cars and for Trump to drop his so-called "reciprocal" tariff, which was provisionally set at 20% for the EU but is being held at 10% during a 90-day pause until July.

Washington, however, is intent on reducing its goods trade deficit with the EU, which was almost 200 billion euros ($226 billion) last year, though it does have a sizeable, albeit smaller, trade surplus in services.

($1 = 0.8843 euros)