EU leaders discuss new US trade proposal as deal clock ticks down

By Philip Blenkinsop and Jan Strupczewski

BRUSSELS (Reuters) -European Union leaders discussed new proposals from the United States on reaching a trade deal at a summit in Brussels on Thursday, with time running out for the bloc to find a common position before a tariff respite expires on July 9.

EU leaders were presented with the "outline" of new proposals from the United States by European Commission President Ursula von der Leyen, an EU official told Reuters, but did not go into specifics.

Separately an EU diplomat described it as a "two-pager, principle agreement", adding the United States did not want to get into specific industrial sectors.

"We only have two weeks left - so we should go for something like that, like Brazil and Britain ... France takes a harder position, Italy is on the other side," the diplomat said.

European leaders were meeting to decide whether they want to push for a quick trade agreement with President Donald Trump's administration or keep fighting for a better deal, with Europe's two biggest economies apparently at odds.

Chancellor Friedrich Merz of Germany had earlier this week said the EU must push for a "faster" and "simpler" deal, while French officials argued the Commission should take a firmer stance and target U.S. services.

Trump has threatened to hike tariffs on EU goods to 50% unless a deal is found next month.

The EU summit pivots from a NATO meeting this week that agreed to drastically raise defence spending in the military alliance but left some European countries finding it difficult to pay, and Spain explicitly demanding an opt-out.

Aside from tariffs, the EU bloc also has to tackle a raft of other issues, including its support for Ukraine and the prospect of EU membership for a country still at war against nuclear-armed Russia. Hungary is firmly opposed.

Ukrainian President Volodymyr Zelenskiy had urged the EU to pass a new sanctions package on Russia targeting its oil trade and banks, as well as give a clear signal on his country's EU accession.

"What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises," he told EU leaders. "Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments."

(Reporting by Philip Blenkinsop, Jan Strupczewski, Bart H. Meijer, Friederike Heine,Jan Lopatka, Milan Strahm, Andreas Rinke, Michel Rose, Yuliia Dysa; Writing by Philip Blenkinsop and Matthias Williams; Editing by Raju Gopalakrishnan, Hugh Lawson and Daniel Wallis)