With two days of talks left, some want a quick UK-style deal to avert 50% tariffs while others want to play hardball
The EU is entering a crunch week with only two days of talks left to secure a trade deal with Washinton to avert Donald Trump’s threatened 50% tariff on its imports into the US.
According to the US treasury secretary, Scott Bessent, on Friday, the negotiations – which continued over the weekend – are focussed on 15 to 18 agreements with important partners, while Trump warned of import tax rates of up to 70% on others.
The uncertainty created by Washington has sent shock waves through the global economy. Businesses have paused investment and the dollar posted its worst performance in 50 years in the first half of the year.
With the clock ticking down to Trump’s 9 July deadline, the European Commission remains uncertain how he will treat the bloc, threatening €1.6tn of transatlantic trade.
“Among member states, the big question will be whether we should reach a deal at all costs to avoid a trade war, or show muscle if the deal is not good enough,” one EU diplomat said.
