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The European Union stated it agreed to speed up negotiations with the US to keep away from a transatlantic commerce conflict, signaling a extra amicable strategy simply days after President Donald Trump criticized the bloc for profiting from the US and slow-walking talks.
“There’s now a brand new impetus for the negotiations,” Paula Pinho, a spokeswoman for the European Fee, instructed reporters on Monday, a day after Fee President Ursula von der Leyen spoke with Trump by telephone. “They agreed each to quick observe the commerce negotiations and to remain in shut contact.”
Following the decision, Trump prolonged the deadline to hit the EU with 50% tariffs by greater than a month to July 9 to permit for extra negotiations. “We had a really good name and I agreed to maneuver it,” Trump instructed reporters Sunday.
Talks up to now have been beset with a large number of issues, with no clear path to discovering a center floor that may appease them each. The Europeans have complained that it’s not clear what the US needs and even who speaks for the American president, and the US has stated the EU unfairly targets US firms with lawsuits and rules.
The EU’s commerce chief, Maros Sefcovic, was anticipated to talk with US Commerce Secretary Howard Lutnick on Monday. EU ambassadors had been additionally scheduled to carry a last-minute assembly on Monday to debate the newest developments with the fee.
US and European equity-index futures climbed together with Asian shares on Monday. The greenback fluctuated after falling to its lowest degree since December 2023.
Trump’s 50% tariff menace would hit $321 billion value of US-EU items commerce, decreasing US gross home product by near 0.6% and boosting costs by greater than 0.3%, in keeping with Bloomberg Economics calculations.
After an preliminary alternate of papers, the US final week rejected a proposal sent by the fee, which handles commerce issues on behalf of the EU’s 27 member states. The EU had supplied to collectively take away tariffs on industrial items, to spice up entry for some American agricultural merchandise and to co-develop AI information facilities, Bloomberg reported.
Whereas the EU has stated its precedence is to discover a negotiated answer with the US, it’s additionally been making ready to retaliate if crucial.
The EU has accredited tariffs on €21 billion ($23.9 billion) of US items in response to Trump’s metals levies that may be shortly carried out. They aim politically delicate American states and embrace merchandise resembling soybeans from Louisiana, residence to Home Speaker Mike Johnson, in addition to agricultural merchandise, poultry and bikes.
The bloc can also be making ready an extra record of tariffs on €95 billion of American merchandise. These measures, that are in response to Trump’s “reciprocal” levies and automotive duties would goal industrial items together with Boeing Co. plane, US-made vehicles and bourbon.
Some member states have been urging cool heads because the tariff deadline nears. German Financial system Minister Katherina Reiche stated the EU and US want “to relax” forward of the talks.
“We have to discover widespread floor. That should be the purpose,” Reiche stated at a Handelsblatt occasion in Heilbronn on Monday. On the similar time, the US should perceive that tariffs additionally damage them, she stated. “There are nonetheless six weeks left to discover a answer,” stated Reiche.
This story was initially featured on Fortune.com
