European governments are calling for a trade deal to be negotiated at pace with the US, following president Donald Trump’s threats of 50% tariffs at the end of last week.
On Friday (23 May), Trump threatened 50% tariffs on all EU exports to the US from as soon as 1 June, saying that he was frustrated with US-EU trade negotiations so far. He also reiterated his argument that the trade relationship between the two is unfair.
Currently, the 20% ‘baseline’ rate on EU goods imposed on ‘liberation day’ is temporarily halved to 10%, with a deadline to negotiate a lower longer-term rate set at 9 July.
Following a “very nice” with the president of the European Commission (EC), Ursula von der Leyen, on Sunday (25 May), both parties recommitted to a July deadline.
Buying time
Von der Leyen’s chief spokesperson, Paula Pinho, told the Guardian that the leaders had agreed “to fast-track the trade negotiations and to stay in close contact”.
"To reach a good deal, we would need the time until July 9,” she posted on X, formerly known as Twitter.
EU trade commissioner Maroš Šefčovič said on Monday (26 May) that he had good calls with US counterparts Howard Lutnick, the commerce secretary, and Jamieson Greer, the trade representative.
Swift deal needed, say leaders
European leaders have been calling for a new deal to be agreed swiftly to avert a tariff hike to either the 20% liberation day rate or the 50% rate Trump threatened on Friday.
French president, Emmanuel Macron, yesterday welcomed the “good exchange” between Trump and von der Leyen, while Italian prime minister Georgia Meloni has proposed a US-EU summit to resolve current tensions.
Meloni held an emergency call with Trump hours after his threats on Friday and has been positioning herself as a bridge between the president and the bloc, Italian officials told the FT.
Spanish, Irish and Belgian leaders and trade ministers have also called for an acceleration in talks.
Trump is due to attend a NATO summit in the Netherlands in late June, where face-to-face talks with fellow leaders could prove pivotal.
Tit-for-tat
Following the introduction of the now-paused 20% liberation tariffs on European goods, EU member states approved an also-suspended €21bn package of tariffs on US exports, such as maize, wheat, motorcycles and clothing.
The package could enter into force from 14 July if a deal with the US isn’t struck. Trump has repeatedly called on the bloc to reduce its trade surplus with the US.
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