Uncertainty persists and the EU (EU) is in trouble when a trade agreement with the United States is possible.
The goal is to reach a consensus on a framework before July 9, when U.S. President Donald Trump’s temporary probation was initially for expiration. The EU appears to be still working with this schedule earlier this week.
But that deadline is over – no trading partners have reached an agreement.
However, Trump himself suggested Tuesday this week that a framework may be established immediately.
“We have about two days left to send them a letter. We are talking to them,” he said. He suggested sending a letter means a deal or a decision on tariffs had been reached. trump card On social media on Monday, the letter has been sent to 14 countries The new tariff rate is outlined, and so far the EU has not accepted such communications.
But Trump also said communication between the EU and the United States has improved.
“Until recently they treated us very badly and now they treated us very well,” he said at a cabinet meeting at the White House on Wednesday. “They were one of the toughest responses.”
This marks a change in Trump’s tone often The trade relations between Washington and Brussels suggests that it is unfair and unbalanced.
according to European CouncilThe value of trade between the EU and the United States was about 1.68 trillion euros ($1.97 trillion), when both goods and services were accounted for in 2024. In terms of commodity trading, the EU recorded a surplus, but had a deficit in trade and trade in the previous year, bringing its overall trading volume to about €50 billion last year.
At the same time, U.S. Commerce Secretary Howard Lutnick also suggested an agreement.
“The European Union has now made important, real offers, which means we will knock down the obstacles, we will open the market to American farmers, ranchers, fishermen, really open their markets, and let Americans, and eventually American entrepreneurship finally sell to Europe,” he said. Speaking Tuesday to CNBC’s “Electric Lunch”.
He added: “The president took these deals to his table and he was thinking about how he wanted to play.”
There is a general expectation for the EU to agree to a 10% benchmark tariff and hope it can negotiate some exemptions or reach other agreements for specific sectors. That would be significantly lower than the 50% tariff Trump had previously demanded.
European Commission President Ursula von der Leyen showed caution in his response to Trump’s comments, saying: “We stick to our principles, defend our own interests, we continue to work sincerely and prepare for all situations,” she told the European Parliament.
Peter Chase, a senior fellow at the Marshall Foundation in Germany, said in an interview with CNBC’s “Squawk Box Europe” on Wednesday that the question is not whether Europe can accept 10% of the responsibilities, but whether the United States can eventually accept them.
“You know, it’s the importer paying, not the exporter,” he said. “If Europeans have tariffs of 10% and South Korea have tariffs of 25%, then … a U.S. company pays more for the same product in South Korea than for European products.”
So European businesses will “handle it, but that’s the price American customers will pay for it.”
