Brussels (Brussels Morning Newspaper) – European Commission President Ursula von der Leyen stated that while the European Union is actively collaborating with US President Donald Trump’s administration to negotiate a trade agreement, Brussels is preparing for any possible outcomes.
Addressing the European Parliament this morning, she stated the EU will “stick to our principles.”
“We defend our interests, we continue to the work in good faith, and we get ready for all scenarios”,
Ms von der Leyen stated.
A deadline to finalise a deal was originally scheduled for today, coinciding with the implementation of increased levies on goods. However, the US postponed the application of “reciprocal tariffs” affecting numerous economies, including the EU, until August 1. US President Donald Trump stated there would be no more delays for the higher rates.
How is Trump planning to target EU exports next?
Yesterday, Mr. Trump announced plans to impose tariffs on imported semiconductors and pharmaceuticals, with potential rates for medicines reaching up to 200%. He mentioned giving drug companies approximately one year to adjust. Additionally, Mr. Trump indicated that he is likely two days away from sending a letter to the European Union, revealing the tariff rate on their exports to the US.
How close are the EU and the US to a deal?
The European Commission’s trade and security spokesperson earlier stated that the EU aims to reach a tentative trade agreement with the US before the August 1 deadline to create some certainty.
Olof Gill mentioned that there is significant confusion to untangle during discussions with the US.
“We’re in the mode of trying to focus on what the Americans actually say in our negotiations,”
He said.
What progress did Šefčovič make in Washington talks?
During his visit to Washington last week, EU trade commissioner Maroš Šefčovič made significant progress on several issues, according to Mr. Gill. He also noted that the EU is carefully consulting with member states to ensure unanimous agreement.
“Right now, we’re simply trying to continue the intensive negotiations we had with the Americans that were building up towards the 9 July deadline, and ideally would still like to get something over the line as soon as possible, well before 1 August,”
He stated.
“We have made good progress on a number of files, and we are consulting with our member states so that they are on board with what we’re doing, and we’re trying to reach an agreement that will cause the minimum amount of damage and allow us to have some sort of certainty going forward, for businesses, for traders.”
He mentioned that reaching an agreement in principle would offer some certainty regarding the overall trading landscape and enable the EU to examine “sector by sector” to determine the next steps in the talks.
