- EU and US aim to strike a trade deal before July 9 to avoid a 50% tariff threat from Washington.
- EU leaders are willing to accept some trade imbalances to prevent a damaging escalation.
- US Treasury hints that some trade negotiations could stretch into September, though talks with the UK and China are complete.
The European Union and the United States are racing against the clock to finalize a trade agreement before July 9. That’s the day when the US is set to slap a 50% tariff on nearly every EU product, a move that could set off a chain of retaliatory measures from Brussels. Officials on both sides seem cautiously optimistic—but the stakes are massive.
Behind closed doors, European Commission President Ursula von der Leyen told EU leaders she’s confident a deal can be reached in time. According to insiders, the mood during yesterday’s meeting shifted noticeably, with many leaders saying they’d tolerate a bit of imbalance in the agreement just to dodge a full-blown trade war.
Trump’s Tariff Threats Still Loom Large
This looming July deadline stems from a surprise move by Donald Trump earlier this year when he floated a sweeping new tariff plan. That plan got paused for three months to allow negotiations—but that grace period is about to expire. And without a deal, the tariffs will automatically kick in.
Washington’s threats have rattled some nerves in Europe, especially with the memory of previous transatlantic trade tensions still fresh. But this time, there seems to be more willingness to compromise—if only to stop things from getting worse.
Treasury Hints at Possible Delays for Other Trade Deals
Adding a twist to the timeline, US Treasury Secretary Scott Bessent said in an interview today that while some trade deals might wrap up by September 1, not all will meet the July cutoff. He pointed out that the US already has deals with the UK and China in the bag, so those talks are effectively “done for now.”
Still, with 18 major trade partners in the mix, there’s a lot left to juggle. Whether the EU and US can stick the landing before the July 9 hammer drops is anyone’s guess—but the urgency is definitely building.
