Introduction to the Negotiations
On Thursday, Ursula von der Leyen, the President of the European Commission, announced that the EU had received a “new document” from the United States to continue negotiations on tariffs. However, she did not disclose any specifics regarding Washington’s demands.
Von der Leyen’s Stance
During a press conference following a EU summit in Brussels, Von der Leyen stated, “All options remain on the table.” She added, “Our message today is clear: we are prepared for an agreement. At the same time, we are preparing for the possibility that a satisfactory agreement may not be reached.”
Von der Leyen emphasized that the EU would defend “European interests when necessary.”
US Trade Representative’s Response
The office of the US Trade Representative did not immediately respond to a request for comment on the latest US proposal.
Negotiation Context
In recent weeks, the US and EU have held multiple negotiation sessions. However, the Trump administration’s attention has shifted towards the Iran nuclear program conflict and maintaining the trade truce with China.
The July 9 deadline set by President Donald Trump for the EU and other countries to reach a tariff reduction agreement with the US is fast approaching. If Trump’s announced “reciprocal” tariffs from April take effect, the additional temporary duty of 10% on EU imports will double to 20% if no agreement is reached before the deadline.
US Treasury Secretary Scott Bessent has suggested that negotiation deadlines for some countries engaging in good-faith negotiations might be extended.
EU’s Expectations
According to sources familiar with the discussions, as reported by Reuters, EU officials are increasingly resigned to the fact that a 10% “reciprocal” tariff base may form the foundation of any trade agreement between the US and the European Union.
Nonetheless, the EU faces Trump’s 25% tariffs on automobiles, steel, and aluminum, along with potential additional sectoral tariffs on semiconductors and pharmaceutical products.
Key Questions and Answers
- What is the latest development in US-EU trade negotiations? The EU has received an updated proposal from the United States to continue discussions on tariffs, but no specifics have been disclosed.
- What is the EU’s current stance? The EU remains open to negotiations and is prepared for both an agreement and the possibility of no satisfactory outcome.
- What are the potential consequences if no agreement is reached by July 9? If Trump’s tariffs are implemented, the additional temporary duty on EU imports will double from 10% to 20%.
- What tariffs does the EU currently face from the US? The EU faces Trump’s 25% tariffs on automobiles, steel, and aluminum, along with potential additional sectoral tariffs on semiconductors and pharmaceutical products.
