EU, US speed up trade talks ahead of July 9 deadline
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The European Union and the US administration are rushing to accelerate bilateral trade talks ahead of a crucial July 9 deadline, aiming to avoid the risk of an escalating tariff confrontation between the two major economies.
Commission President Ursula von der Leyen and US President Donald Trump had a “good” conversation on Sunday, a European Commission spokesperson said at a regular press conference on Monday, indicating that both sides are maintaining an active dialogue channel.
“We want to reach an agreement with the United States. We want to avoid tariffs. We believe that tariffs cause pain. We want to achieve a win-win outcome, not a lose-lose outcome,” the spokesperson stressed.
Deadline Approaches, Risks Escalate
The Trump administration has issued a clear warning that if trade partners including the EU fail to reach a deal by July 9, tariff increase letters will be sent, effective August 1, 2025. The aim is to pressure the parties to make concessions in areas such as agriculture, industry and technology.
The talks are now focused on narrowing differences on state subsidies, product standards and export regulations, all of which have far-reaching implications for supply chains and the transatlantic trade balance.
Potential economic and market impact
If no breakthrough is reached, trade tensions could have a negative impact on financial markets, especially on industrial and export stocks in Europe. The euro could come under pressure, while global risk sentiment could also be tested.
However, observers still expect a temporary or partial agreement to avoid the worst-case scenario of a new tariff war similar to the 2018–2019 period.