Headlines
US trade deal eludes Europe days out from Trump’s deadline, sources say
Published by Global Banking & Finance Review®
Posted on July 4, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 4, 2025
2 min readLast updated: January 23, 2026
EU struggles to finalize a trade deal with the US as Trump's deadline approaches, risking higher tariffs. Negotiations may extend to avoid immediate tariff hikes.
By Philip Blenkinsop and Julia Payne
BRUSSELS (Reuters) -European Union negotiators have failed so far to achieve a breakthrough in trade negotiations with the Trump administration and may now seek to extend the status quo to avoid tariff hikes, five EU diplomats briefed on the talks said on Friday.
The EU had already dropped hopes of a locking in a comprehensive trade agreement ahead of Trump’s July 9 deadline, but following the Washington talks it was not clear if it would even secure a lighter agreement in principle.
The Commission told EU envoys on Friday afternoon that it believed the United States was willing to "pause" the current tariffs in place for partners with which it reached an initial agreement, with possible tariff relief later.
Without a preliminary agreement, broad U.S. tariffs on most imports would rise from their current 10% to the rate set out by Trump on April 2. In the EU's case that would be 20%.
Two of the EU diplomats who spoke to Reuters said the Commission appeared to be pushing more for the first option, to extend the status quo, and then seek to negotiate further.
U.S. Treasury Scott Bessent said on Thursday negotiations were set to continue into the weekend.
The EU currently faces 50% tariffs on steel and aluminium exports to the United States, 25% tariffs on cars and car parts and the 10% levy on most other products.
The EU has agreed a package of 21 billion euros ($24.7 billion) of countermeasures, but not put them into force. The bloc is also looking into a second package, originally envisaged at 95 billion euros. That has now been whittled down to 72 billion euros after lobbying from various EU members, two of the diplomats said.
($1 = 0.8490 euros)
(Reporting by Philip Blenkinsop and Julia Payne; Editing by Sharon Singleton)
European Union negotiators have not achieved a breakthrough in trade negotiations with the Trump administration and may seek to extend the current status quo.
Without a preliminary agreement, broad U.S. tariffs on most imports could rise from 10% to 20% for the EU, as set by Trump.
The EU faces 50% tariffs on steel and aluminium exports, 25% tariffs on cars and car parts, and a 10% levy on most other products.
The EU has agreed on a package of 21 billion euros in countermeasures but has not yet put them into force.
Negotiations are set to continue into the weekend, as stated by U.S. Treasury Scott Bessent.
Explore more articles in the Headlines category
