EU Seeks Trade Compromise With U.S. Ahead of Looming Tariff Deadline
The European Union is working against a July 9 deadline to strike a trade agreement with the U.S., aiming to shield key exports from a sweeping hike in American tariffs under President Donald Trump’s protectionist agenda.
While the EU is willing to accept a universal 10% tariff on a wide range of goods, it’s seeking softer terms for sensitive sectors such as pharmaceuticals, semiconductors, alcohol, and aircraft.
Brussels is also pressing for concessions on Washington’s steep levies on cars, steel, and aluminum, requesting exemptions or quotas to ease the 25% and 50% duties, respectively. In return, the EU is prepared to entertain what officials call a “slightly asymmetrical” deal tilted in America’s favor—provided it opens the door for deeper talks.
Trade chief Maros Sefcovic will lead a last-ditch delegation to Washington this week in hopes of securing an interim deal that prevents the U.S. from raising tariffs on nearly 70% of EU exports, currently valued at €380 billion. Automotive exports alone accounted for €52.8 billion in 2024, with Germany, Italy, and France driving most of the €24 billion in steel and aluminum sales.
While the White House has proposed a broader framework covering tariff reductions, regulatory alignment, and strategic economic collaboration, specifics remain under wraps. EU officials are weighing four scenarios: a mutually acceptable agreement, a one-sided offer they must reject, a deadline extension, or a breakdown leading to higher tariffs.
In case of failure, the EU has readied a slate of countermeasures, including retaliatory tariffs on U.S. goods worth over €100 billion. These target politically sensitive products—soybeans, bourbon, motorcycles, and aircraft—along with potential moves involving export controls and procurement bans.
Both sides appear eager to avoid escalation, and a temporary pact could extend negotiations beyond the July cutoff. Still, officials say retaliation remains on the table if diplomacy falters.
Alexander Stefanov
Reporter at Coindoo
Алекс е опитен финансов журналист и крипто ентусиаст. С повече от 8 години опит в отразяването на крипто, блокчейн и финтех индустриите, той е добре запознат с комплексния и постоянно развиващ се свят на дигиталните активи. Неговите проницателни и провокиращи мисълта статии предоставят на читателите ясна картина на най-новите развития и тенденции на пазара. Неговият подход му позволява да разбива сложни идеи на достъпно и проницателно съдържание. Следете неговите публикации, за да сте в крак с най-важните тенденции и теми.
