The European Union (EU) is intensifying its efforts to finalize a trade agreement with the United States before the looming July 9 deadline, aiming to avert a new wave of punitive tariffs, reported Xinhua.
European Commission spokesperson Olof Gill confirmed on Monday that "political and technical contacts" between Brussels and Washington are ongoing, with the EU still committed to securing an agreement in principle by Wednesday.
While hopes for a comprehensive trade deal have been abandoned due to time constraints, the EU remains focused on establishing a framework that can prevent further tariff increases. If no agreement is reached, U.S. tariffs on most EU imports are expected to rise from the current 10 percent to 20 percent, and potentially up to 50 percent, in line with rates announced by U.S. President Donald Trump on April 2.
On Friday, the European Commission held consultations with EU member states to assess the situation. Further high-level engagement took place over the weekend, with Commission President Ursula von der Leyen speaking by phone with President Trump on Sunday. Although no formal breakthrough was reported, officials described the call as a "good exchange."
On Sunday, U.S. Treasury Secretary Scott Bessent said that tariffs for countries that had not reached an agreement with the United States would take effect on Aug. 1 instead of July 9. Trump said that the United States would begin issuing tariff notification letters to a dozen countries starting Monday at 12 p.m. Eastern Time (1600 GMT).
The European Commission continues to weigh its options. A retaliatory tariff list has been prepared and reviewed with member states and industry stakeholders. However, according to Gill, there are no immediate plans to activate it, as "diplomatic efforts remain the priority."
Germany, France, and Italy remain closely engaged in the negotiations. German Chancellor Friedrich Merz has emphasized the need for a deal to protect industries vulnerable to tariffs, including the automotive and pharmaceutical sectors.
As the July 9 deadline approaches, analysts remain skeptical about the feasibility of concluding multiple lasting agreements within such a short period.
"Trade deals typically take years to negotiate. It would be surprising to see long-term deals materialize so quickly," said Andrew Lapping, chief investment officer at Ranmore Fund Management.
"Trump is in a teasing mood, hinting at more deals while keeping markets guessing. Investors are bracing for fresh volatility," said Susannah Streeter, head of Money and Markets at Hargreaves Lansdown, a British financial services company.
- EU
- US
- Tariffs
Source: www.dailyfinland.fi
