EU Sees US Trade Talks Extending Beyond July Deadline
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The European Union believes trade negotiations with the U.S. could extend beyond President Donald Trump’s July 9 deadline, even as the speed of the talks has increased over the past week.
The EU sees reaching an agreement on the principles of a deal by July 9 as a best-case scenario, which would allow further talks to work out the details, according to people familiar with the matter. The U.S. is expected to respond to the latest round of negotiations in the coming days and provide clarity on the next steps.
The transatlantic allies have been rushing to clinch a deal before the July deadline, when Washington will hit nearly all the bloc’s exports with a 50% tariff, likely triggering retaliation. The EU estimates that the duties adopted by Trump now cover 380 billion euros ($434 billion), or about 70%, of its exports to the US.
The EU’s trade chief, Maros Sefcovic, has been holding regular calls and an in-person meeting with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer since the partners agreed to fast-track negotiations two weeks ago.
A spokesperson from the European Commission, which handles trade matters for the EU, didn’t immediately respond to a request for comment.
The commission briefed member states on the status of talks earlier this week.
The two sides are now conducting in-depth discussions on both critical sectors — such as steel and aluminum, automobiles, pharmaceuticals, semiconductors and civilian aircraft — and tariff and non-tariff barriers, said the people, who spoke on condition of anonymity.
The people cautioned that while talks were taking place in a positive environment, they remained difficult. The EU believes the U.S. is seeking one-sided concessions and any agreement will likely be asymmetrical to Washington’s benefit.
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Because of that the bloc is stepping up preparations for countermeasures, including actions that could go beyond tariffs, according to the people. The commission will be consulting with member states to examine strategic areas where the U.S. relies on the EU for possible retaliation.
As part of proposals shared with the U.S. late last month, the EU has offered to gradually work toward zero-for-zero tariffs on cars, industrial goods and non-sensitive agricultural goods by looking at quotas as interim steps, Bloomberg reported earlier. Those negotiations have now gathered pace, the people said.
The industries in focus have already been hit with U.S. tariffs, or have been earmarked for future levies. The EU has proposed deepening cooperation with the U.S. in those sectors as part of a previous proposal shared with the U.S. last week, Bloomberg reported. The two sides are also looking to cooperate on economic security issues.
The commission hopes that the bloc’s work on simplifying its regulations will address some of the Trump administration’s concerns with non-tariff barriers. However, any U.S. demands that impair the EU’s autonomy in regulatory and tax matters remain red lines, the people said.
In parallel to ongoing talks with the Trump administration, the EU will continue to prepare countermeasures should negotiations fail to yield a satisfactory outcome.
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The EU has approved tariffs on 21 billion euros of U.S. goods in response to Trump’s metals levies that can be quickly implemented. They target politically sensitive American states and include products such as soybeans from Louisiana, home to House Speaker Mike Johnson, as well as agricultural products, poultry and motorcycles.
The bloc is also preparing an additional list of tariffs on 95 billion euros of American products in response to Trump’s so-called “reciprocal” levies and automotive duties. They would target industrial goods including Boeing Co. aircraft, U.S.-made cars and bourbon.
Separately, EU officials believe there is an opportunity to cooperate on critical minerals, the people said. Bilateral talks are ongoing and the issue could also be raised at this month’s Group of Seven summit in Canada.
