Berlin (Brussels Morning Newspaper) – German Chancellor Friedrich Merz called on the European Union on Thursday to reach a “quick and simple” agreement on tariffs with the United States, as the deadline for negotiations approaches in just a few days.
The European Union faces a deadline of July 9, 2025, to reach a trade deal with the United States or face the imposition of major new U.S. tariffs on the majority of its goods.
Why is Merz urging a quick EU-US deal?
“It is better to achieve a quick and simple solution than a lengthy and complicated one that remains in the negotiation stage for months,”
Merz expressed in Berlin, at a time when EU trade chief Maros Sefcovic is in the US seeking to seal an accord.
Merz stated a quick deal was required
“to remove the burden of tariffs on our businesses, which are far too high”.
He also said that the current discussions are
“not about a minutely detailed trade deal” but “the quick resolution of a tariff dispute”.
A speedy deal was needed, he stated,
“in particular for our country’s key industries: chemicals, pharmaceuticals, mechanical engineering, aluminium, steel, automobiles”.
How is the US pressuring the EU in talks?
Negotiations between the EU and the U.S. have been strenuous, both sides seeking at minimum a preliminary or “bare-bones” agreement ahead of the deadline. The EU has stated that it is prepared to accept a universal 10% tariff on many exports, and is advocating for lower rates or exemptions for priority sectors like pharmaceuticals, semiconductors, alcohol, and commercial aircraft.
In return, the EU has offered to increase purchases of certain American goods, but would not offer any changes to its digital services regulation or value-added tax regime.
What happens if no tariff agreement is reached
The EU must reach a deal by next Wednesday or face the implementation of heavy US tariffs on most of its goods.
If no deal is finalised, the United States plans to increase the tariff on EU imports by an extra 20 per cent, in addition to the existing 10 per cent. Without an agreement, the standard tariff on EU imports could double to 20 per cent or more, with Trump at one point warning of a possible 50 per cent tariff.
