The European Union stated it agreed to speed up negotiations with the US to keep away from a transatlantic commerce struggle, signaling a extra amicable strategy simply days after President Donald Trump criticized the bloc for profiting from the US and slow-walking talks.
“There’s now a brand new impetus for the negotiations,” Paula Pinho, a spokeswoman for the European Fee, advised reporters on Monday, a day after Fee President Ursula von der Leyen spoke with Trump by telephone. “They agreed each to quick observe the commerce negotiations and to remain in shut contact.”
Following the decision, Trump prolonged the deadline to hit the EU with 50% tariffs by greater than a month to July 9 to permit for extra negotiations. “We had a really good name and I agreed to maneuver it,” Trump advised reporters Sunday.
Talks to this point have been beset with a large number of issues, with no clear path to discovering a center floor that may appease them each. The Europeans have complained that it’s not clear what the US desires and even who speaks for the American president, and the US has stated the EU unfairly targets US corporations with lawsuits and rules.
The EU’s commerce chief, Maros Sefcovic, was anticipated to talk with US Commerce Secretary Howard Lutnick on Monday. EU ambassadors had been additionally scheduled to carry a last-minute assembly on Monday to debate the newest developments with the fee.
US and European equity-index futures climbed together with Asian shares on Monday. The greenback fluctuated after falling to its lowest stage since December 2023.
Trump’s 50% tariff risk would hit $321 billion price of US-EU items commerce, reducing US gross home product by near 0.6% and boosting costs by greater than 0.3%, based on Bloomberg Economics calculations.
After an preliminary alternate of papers, the US final week rejected a proposal despatched by the fee, which handles commerce issues on behalf of the EU’s 27 member states. The EU had supplied to collectively take away tariffs on industrial items, to spice up entry for some American agricultural merchandise and to co-develop AI knowledge facilities, Bloomberg reported.
Whereas the EU has stated its precedence is to discover a negotiated answer with the US, it’s additionally been making ready to retaliate if needed.
The EU has authorised tariffs on €21 billion ($23.9 billion) of US items in response to Trump’s metals levies that may be rapidly applied. They aim politically delicate American states and embody merchandise corresponding to soybeans from Louisiana, house to Home Speaker Mike Johnson, in addition to agricultural merchandise, poultry and bikes.
The bloc can also be making ready an extra checklist of tariffs on €95 billion of American merchandise. These measures, that are in response to Trump’s “reciprocal” levies and automotive duties would goal industrial items together with Boeing Co. plane, US-made automobiles and bourbon.
Some member states have been urging cool heads because the tariff deadline nears. German Financial system Minister Katherina Reiche stated the EU and US want “to settle down” forward of the talks.
“We have to discover frequent floor. That should be the objective,” Reiche stated at a Handelsblatt occasion in Heilbronn on Monday. On the similar time, the US should perceive that tariffs additionally harm them, she stated. “There are nonetheless six weeks left to discover a answer,” stated Reiche.
This story was initially featured on Fortune.com
