EU-US Trade Negotiations: Is There a Chance for a Deal?
European officials had hoped to reach an agreement with the US on reducing or eliminating the 10-percent tariffs on imported goods, but now these hopes are gradually fading. Some sources report that some EU representatives have already lost faith in the possibility of resolving this situation, as the US is generating significant revenue from these duties.
Currently, almost all goods that Europe exports to the US are subject to a base tariff of 10%. In addition, there are additional restrictions, for example, 25% on imported cars. The EU is trying to achieve a reduction in the base tariff, but, as one anonymous source notes:
“10% is a complicated topic. We are pressuring them, but they are already receiving revenue.”
Time Is Working Against Europe
The EU refuses to accept a dual rate, as the UK did, while the US rules out the possibility of reducing tariffs below 10%. The situation is complicated by 50-percent tariffs on steel and aluminum. Now Europe has limited time – until July 9th, when tariffs on many goods could rise to 50%.
US President Donald Trump stated that the EU has not yet offered a fair deal:
“We are negotiating, but I don’t feel they are offering a fair deal. They will either make a good deal or simply pay what we say.”
On the other hand, European Commission President Ursula von der Leyen remains optimistic, noting that negotiations are progressing, albeit slowly.
Despite the formal statements from both sides, the reality looks less optimistic. The US has a financial interest in maintaining high tariffs, while Europe is facing increasing pressure due to the deadlines. The coming month will be decisive for the future of trade between the two economic giants.