Rome (Brussels Morning Newspaper) – European Commission President Ursula von der Leyen stated on Thursday that the European Union is actively working to secure a trade deal with the US. “We are working nonstop to find an initial agreement with the United States to keep tariffs as low as possible and to provide the stability that businesses need,” she expressed at the Italian-French Economic Forum.
The United States, led by President Donald Trump, is threatening to impose large new tariffs on European Union (EU) goods unless a new deal is struck with a firm deadline of August 1, 2025. As the situation heightens, uncertainty is spreading among businesses and policymakers on both sides of the Atlantic.
What is at stake for transatlantic trade ties?
Von der Leyen emphasised that US-EU trade
“accounts for 20% of all our exports”
And is worth
“roughly 3% of our GDP,”
keeping
“millions of jobs on both sides of the Atlantic.”
“This is why our priority is to stabilise the situation with the United States,”
Von der Leyen added, noting that tariffs are “attacks on industry” and “attacks on people.”
Still, Commission President acknowledged the limitations of transatlantic ties:
“We know the relationship with the United States may not return to what it once was.”
The EU, she said, is working to maintain and diversify its global trade relations.
How would new US tariffs affect EU industries?
US President Donald Trump has declared August 1, 2025, the final date to impose new tariffs on countries, including the European Union, unless a new trade deal is agreed upon. Trump has claimed, “No extensions will be granted” after this date, and therefore, it is clear that every payment due on the new tariffs will be due and payable starting August 1.
The US has threatened tariffs as high as 50% on all EU imports if negotiations fail, with a proposed baseline of 10% on most goods and higher rates for specific sectors such as automobiles, steel, pharmaceuticals, and copper. Previous tariffs included a 20% import tax on EU-made products in April, which was later put on hold and replaced with a 10% standard rate to allow for negotiations.
How is von der Leyen preparing for all outcomes?
However, a day earlier, Ursula von der Leyen also stated that the EU is “ready for all scenarios” with regard to the new tariffs from US President Trump. von der Leyen underlined the EU’s dedication to the talks while also indicating that the EU is preparing in case tariffs are actually imposed if no agreement is yet in place prior to August 1, 2025.
Von der Leyen acknowledged the talks are at a sensitive moment and that the EU wanted certainty in forming a framework for a trade deal, but was also preparing itself for any economic consequences of the imposition of higher tariffs by the US.
