The European Union is in negotiations with the United States regarding trade, aiming to establish an agreement similar to the one formed with the UK.
Negotiations for an EU-US Deal
Michael Clauss, an advisor to German Chancellor Friedrich Merz, revealed that the EU is aiming for a trade deal with the US that resembles the UK agreement, which will likely require some tariffs to remain in place after next month. He indicated that instead of a full deal by July 9, a declaration following the model of the US-UK agreement is expected.
Member States' Reactions to US Tariffs
Diplomats and officials briefed on the matter have stated that fears of economic consequences may deter blocks from retaliating against US tariffs. Some nations, led by France, are prepared to respond, while others, such as Italy and Hungary, are wary of escalation and prefer to continue negotiations.
Uncertainty Surrounding the Deal's Outcomes
Clauss noted that much depends on the readiness of EU countries to accept a reciprocal duty of 10%. He mentioned concerns that a lack of a final agreement could push tariffs up to 50%. Negotiations will also cover important sectors such as semiconductors and pharmaceuticals.
The uncertainty surrounding the final US deal maintains tension among EU member states, each evaluating potential economic effects. No agreement on key issues has yet been reached, and discussions continue.
