The EU is still racing against time to seal a deal with Trump

The European Union won a brief pause in its major trade fight with the United States, yet both sides still face a road to a lasting deal. Brussels wants a deal that helps both parties. Its key idea is a zero-for-zero plan in which each side drops all tariffs on industrial goods. The EU wants a deal that would help both parties. In return, the EU would buy more U.S. soybeans, weapons, and liquefied natural gas, aiding the bloc’s plan to stop buying Russian gas by the end of 2027. U.S. President Donald Trump stepped back from plans to slap 50 % tariffs on EU goods from 1 June. After a phone call with European Commission President Ursula von der Leyen, he set a new deadline of 9 July, giving negotiators five extra weeks. The Commission, which handles trade for the 27-nation bloc, said the call gave the talks new drive. Officials, however, offered no sign that the main issues had been solved. An official noted that the union could even consider buying more hormone-free beef, similar to the arrangement Britain reached with the U.S. earlier this month. On Monday, the European Commission said it would vigorously defend its “zero-for-zero” tariff proposal , pointing to a scheduled call the same day between European Trade Commissioner Maroš Šefčovič and U.S. Commerce Secretary Wilbur Ross (incorrectly identified as Howard Lutnick in earlier reports). “We believe that’s a very attractive starting point for a good negotiation that could lead to benefits on both sides of the Atlantic,” a Commission spokesperson said. Beyond tariffs, the Esees room for cooperation on issues such as steel overcapacity—an area where both Brussels and Washington blame China—as well as in digital technologies like artificial intelligence. The bloc wants an end to the 25% duties on steel and cars, and for Trump to drop his so-called “reciprocal” tariff, which had been set at 20% for goods but is currently held at 10% during a 90-day pause that runs until July. Washington, however, remains focused on narrowing its goods trade deficit with the EU, which stood at almost €200 billion ($228 billion) last year, even though the U.S. runs a sizable surplus in services. The White House has sent the EU a detailed list of demands The list includes the EU’s value-added tax system, food safety rules, and national digital services taxes. An industry source familiar with the discussions said Trump is seeking a quick deal with a mix of tangible and symbolic victories, but that his administration’s demands go well beyond what the EU is willing—or in some cases able—to grant. For example, taxes fall under the authority of individual EU member states, so the Commission cannot simply negotiate them away. Bernd Lange, chair of the European Parliament’s trade committee, who is leading a delegation of lawmakers to Washington this week, said the U.S. is complaining about barriers that do not exist. “It’s about our standards, our chemicals regulation, and our digital regulation,” he said before the trip. “These are not non-tariff barriers. They are not on the table in negotiations.” Lange added that the EU could review certain rules to see if they are overly strict, but it would not abandon its standards wholesale as the White House seems to demand. The Trump administration has also called for the reshoring of manufacturing, especially for steel, cars, mobile phones, and semiconductors, urging companies to move production back to the United States. Irish Agriculture Minister Martin Heydon said on Monday that the EU was right to seek a mutually beneficial agreement, and that Trump’s frustration at the union’s refusal to “just roll over” was almost a compliment to the bloc’s stance. “We are one of the most important trading partners for the U.S., so we shouldn’t simply agree to every demand from the White House,” Heydon said. “We need to negotiate and explain the mutually beneficial nature of the trade.” Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

Source: Cryptopolitan