The European Union mentioned it agreed to speed up negotiations with the US to keep away from a transatlantic commerce battle, signaling a extra amicable method simply days after President Donald Trump criticized the bloc for benefiting from the US and slow-walking talks.
“There’s now a 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 both to fast track the trade negotiations and to stay in close 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 very nice call and I agreed to move 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 can appease them each. The Europeans have complained that it’s not clear what the US needs and even who speaks for the American president, and the US has mentioned the EU unfairly targets US firms with lawsuits and laws.
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 most recent 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 menace would hit $321 billion value of US-EU items commerce, reducing US gross home product by near 0.6% and boosting costs by greater than 0.3%, in accordance with Bloomberg Economics calculations.
After an preliminary change 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 information facilities, Bloomberg reported.
Whereas the EU has mentioned its precedence is to discover a negotiated answer with the US, it’s additionally been making ready to retaliate if mandatory.
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, residence to Home Speaker Mike Johnson, in addition to agricultural merchandise, poultry and bikes.
The bloc can also be making ready a further listing 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 vehicles and bourbon.
Some member states have been urging cool heads because the tariff deadline nears. German Economic system Minister Katherina Reiche mentioned the EU and US want “to calm down” forward of the talks.
“We need to find common ground. That must be the goal,” Reiche mentioned at a Handelsblatt occasion in Heilbronn on Monday. On the similar time, the US should perceive that tariffs additionally damage them, she mentioned. “There are still six weeks left to find a solution,” mentioned Reiche.
This story was initially featured on Fortune.com
