The European Union mentioned it agreed to speed up negotiations with the US to keep away from a transatlantic commerce warfare, signaling a extra amicable method 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 cellphone. “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 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 corporations 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 risk 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 response to 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 knowledge facilities, Bloomberg reported.
Whereas the EU has mentioned its precedence is to discover a negotiated resolution with the US, it’s additionally been getting ready to retaliate if mandatory.
The EU has accredited tariffs on €21 billion ($23.9 billion) of US items in response to Trump’s metals levies that may be shortly applied. They aim politically delicate American states and embody merchandise akin to soybeans from Louisiana, house to Home Speaker Mike Johnson, in addition to agricultural merchandise, poultry and bikes.
The bloc can also be getting ready an extra 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 Financial system Minister Katherina Reiche mentioned the EU and US want “to settle down” forward of the talks.
“We have to discover frequent floor. That have to be the purpose,” Reiche mentioned at a Handelsblatt occasion in Heilbronn on Monday. On the identical time, the US should perceive that tariffs additionally damage them, she mentioned. “There are nonetheless six weeks left to discover a resolution,” mentioned Reiche.
This story was initially featured on Fortune.com
