European Union (EU) officials see new US demands for concessions as well as other measures as potentially undercutting a recent agreement that brought the allies back from the brink of a trade war.

Earlier this month, US President Donald Trump’s administration sent the EU a fresh proposal for implementing “reciprocal, fair and balanced” trade, according to people familiar with the matter, who spoke on the condition of anonymity to discuss private deliberations.

EU officials view the requests as maximalist and the concessions as significant, some of the people said. The people declined to disclose specifics on the US demands because member states are due to be briefed on the discussions on Wednesday.

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The new demands come as the two sides prepare to negotiate the next steps of this summer’s trade deal, which set a 15 per cent tariff on most EU goods entering the US.

The US has been seeking an opening to discuss the bloc’s legislation, including digital and technology rules as well as corporate compliance and climate-related regulations, the people said. The EU has repeatedly said that maintaining regulatory autonomy is a red line, but that it will consult the US on each subject.

The European Commission, the EU’s executive arm, did not immediately respond to a request for comment. The White House did not immediately respond to a request for comment sent outside of normal business hours.

Both sides have taken several steps to implement the trade accord in recent months.

The Trump administration confirmed that European cars benefit from the 15 per cent rate rather than the higher 25 per cent sectoral duty it imposes on others. Pharmaceutical exports are expected to receive the same treatment.

In return, the EU has presented legislation to lower tariffs on US industrial goods and some non-sensitive agricultural exports. The move needs backing from the European Parliament, which must also green light the overall trade deal.

However, discussions to cut the 50 per cent US tariffs on steel and aluminium have made little progress. The bloc announced this week that it plans to introduce the same rate on foreign steel imports above a certain quota.

The US has also resisted adding goods such as wine and spirits to the list of imports that are exempt from the 15 per cent tariff, the people said.

EU officials are concerned that the Trump administration is, at the same time, expanding the list of derivative steel and aluminium products covered by its 50 per cent rate and preparing more potential tariffs on other sectors like medical devices and technologies, the people added.

The worry, the people said, is that taken together these moves could weaken the 15 per cent tariff ceiling the bloc was able to secure.

“The top argument to sell the deal to our private sector and public opinion is the stability,” EU industry commissioner Stephane Sejourne told Bloomberg News in an interview earlier this week. “Without stability over four years, it can be difficult to say that this agreement is a good deal,” he said.

EU officials will be seeking political guidance from member states on the US proposal and how to handle next steps in the negotiations, the people said. – Bloomberg