EU hopes for US tariff deal ‘in coming days'

Channel 4

09-07-2025

The European Union says it hopes to reach a tariff deal with the US within days, following months of negotiations.
Donald Trump has imposed 50 percent
tariffs
on EU steel and aluminium, 25 percent tariffs on cars and car parts and 10 percent tariffs on more than two-thirds of other European exports to the US.
In addition, the US President has threatened further tariffs on other key sectors including pharmaceuticals, as well as semiconductors and copper.
Economists have warned that the tariffs will knock economic growth on both sides of the Atlantic.
A 90-day pause on wider 20 percent tariffs was due to expire this morning – and with it Europe's negotiating window – but Trump has now extended that deadline until 1 August.
Other economies, including Japan and South Korea, were this week sent letters by the US president announcing that they will face yet more tariffs from that date.
The EU has not received one of those letters and is now sounding upbeat about getting a deal by the end of the month.
'We aim to reach a deal before then, potentially even in the coming days', the European Commission's Trade Spokesperson, Olof Gill, said on Wednesday.
'We have shown our readiness to reach an agreement in principle, and the [European] Commission has consulted closely with our Member States and industry to ensure that there is a high degree of cohesion in our overall EU approach.'
'We count on the US continuing to engage in this sense. Reaching a deal now depends on the willingness to find an outcome that is acceptable to both sides.'
– Olof Gill
United States Secretary of Commerce, Howard Lutnick, said yesterday that he had now received a viable offer from the EU.
'European Union, to their credit, has now made significant, real offers, meaning we're going to take down our barriers, we're going to open our markets to American farmers, ranchers, fishermen, really open their markets, and let Americans, finally American entrepreneurial spirit finally, get to sell to Europe', he told US news channel CNBC.
But European Commission President Ursula von der Leyen has signalled that a deal will most likely be the starting point, not the endgame.
'I had a good exchange with President Trump earlier this week to help move things forward', she told the European Parliament on Wednesday.
'We are looking for a reliable framework from which we can keep building our common trade.' – Ursula von der Leyen
EU officials have previously been dismissive of the
British deal struck with the US
back in May.
The UK deal, which is yet to come fully into effect, will see tariffs fall to 10 percent for key sectors such as steel.
At the time, EU officials insisted they wanted a 'zero for zero' deal with the US.
That is looking increasingly unlikely.
One EU source said he had seen the outline of a US offer to the EU over the weekend. It sounded remarkably similar to the UK one.
It would see a reduction in most tariffs down to 10 percent 'with exemptions', he said.
Asked about the similarities, the EU's trade spokesperson hit back:
'We are not going to make comparisons with other agreements that the US has signed because we don't already have an agreement.'
'The reason we are working day and night to find a solution is because we believe tariffs are bad for business', said von der Leyen.
If a tariff deal cannot be struck, the EU has threatened to retaliate with billions of dollars worth of counter-tariffs.
President Macron on a
state visit to London
yesterday told a joint session of the House of Parliament that both France and the UK would do well to 'de-risk our two countries' from 'excessive dependencies' with the US.
The EU-US traded €1.6 trillion worth of goods and services in 2023 making it the biggest trading link in the world.
The European Union insists that it is a relationship it would like to mend and grow, but is ready for the worst.
'We stick to our principles, we defend our interests, we continue the work in good faith, and we get ready for all scenarios', said Ursula von der Leyen.
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