The European Union now admits it’s unlikely to finalize a comprehensive trade agreement with the United States by the critical July 9 deadline set by President Donald Trump. Despite some progress in recent days, Brussels believes that at best, a framework agreement on general principles could be reached—without firm commitments.

⏳ If no deal is reached, Washington plans to impose hefty 50% tariffs on European goods worth up to $434 billion. Meanwhile, the EU is preparing countermeasures that could target American exports totaling over $116 billion.

Talks Accelerate, But Results Are Limited

EU Trade Commissioner Maroš Šefčovič has intensified communications with U.S. Commerce Secretary Howard Lutnick and lead negotiator Jamieson Greer. Despite this, the U.S. has not yet officially responded to the EU’s latest proposal. Negotiations cover sensitive areas like steel, aluminum, aircraft, automobiles, pharmaceuticals, and semiconductors—as well as tariff and non-tariff barriers.

The EU side fears the U.S. is pushing for terms that largely favor Washington. If talks collapse, Brussels has a retaliation package ready—not only tariffs, but also measures targeting strategic sectors where the U.S. depends on Europe.

Europe Readies a Tough Response

Brussels has already approved the first wave of tariffs worth €21 billion, targeting politically sensitive U.S. products such as soybeans from Louisiana, poultry, and motorcycles from key electoral states. A second, stronger wave is ready to hit American exports worth €95 billion, including Boeing aircraft and bourbon.

The European Commission has made it clear it will not back down on its “red lines,” such as tax sovereignty and regulatory autonomy of member states. These issues are non-negotiable—even under the threat of tariffs.

Lagarde Issues Warning Over Escalating Economic Conflict

European Central Bank President Christine Lagarde issued a stark warning on Wednesday during a speech in Beijing: “The world is heading toward deeper economic trouble if countries continue weaponizing trade.” She noted that since 2014, the number of subsidy-related interventions distorting global trade has more than tripled.

Lagarde pointed out that it’s not just China—emerging markets and developed economies alike are taking similar steps. She highlighted how America’s share of global demand has surged in recent years, largely due to high public spending. “Coercive trade policy cannot solve fiscal imbalance,” she said. “It only causes economic damage.”




#TradeTensions , #TRUMP , #Tariffs , #Eu , #TradingCommunity

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“