EU closing in on ‘framework’ trade deal with US to avoid Trump’s 50% tariffs

 EU closing in on ‘framework’ trade deal with US to avoid Trump’s 50% tariffs

The European Union and the United States are moving quickly to finalize a high-level trade framework that could prevent severe tariffs from taking effect next week. President Donald Trump has threatened to impose 50 percent tariffs on all EU goods starting July 9 unless an agreement is reached. Talks are intensifying in Washington as the EU tries to avoid this deadline and limit the damage to its economy.

Currently, most EU exports to the US already face a 10 percent tariff, with some sectors such as cars and steel facing 25 to 50 percent. The EU is reportedly open to accepting a 10 percent flat tariff on all goods, but only if that allows negotiations to continue and if the US agrees to hold off on further car-related tariffs. Germany, in particular, is eager for relief, as its automotive sector is especially exposed.

EU trade chief Maroš Šefčovič is leading the push in Washington and has secured meetings with top US officials including Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. The aim is to reach a quick, simple agreement in principle. German Chancellor Friedrich Merz also supports this approach, favoring speed over detailed, long-term negotiations.

An agreement could be announced as early as July 4, giving Trump a major headline during Independence Day celebrations. EU officials believe it is in everyone’s interest to find a deal that satisfies both sides, even if it is vague. Still, EU leaders want firm guarantees from the US that no new tariffs will be added during any extension period.

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Behind the scenes, EU negotiators are under pressure to shift their strategy toward something closer to the UK’s approach to Trump’s tariffs. Commission President Ursula von der Leyen was reportedly convinced by German leaders to accept a looser, less detailed deal, similar to the one the UK signed earlier this year. Von der Leyen acknowledged that achieving a full trade deal in under 90 days is impossible, so the focus has shifted to a basic agreement in principle.

Tensions have grown partly because of how the EU normally negotiates: as a bloc of 27 member states, often focusing on very detailed regulatory points. Trump has expressed frustration with that process and has instead demanded faster results. His team reportedly handed EU negotiators a massive document listing trade grievances against dozens of countries, including more than 30 pages focused on the EU alone.

While both sides are close to agreeing on tariffs, more challenging areas remain. These include US demands related to pharmaceuticals and semiconductors, oil and gas purchases, and EU food and car regulations. These are sensitive issues for Europe and are considered red lines in the talks.

In a recent briefing, top EU officials said the US proposal sent last Wednesday lacked any clear offers of concessions, further raising doubts among EU member states. Despite this, talks are continuing with urgency, and Šefčovič is expected to update EU ambassadors on Friday.

Sources suggest that even if the deal is very basic, it would allow Trump to claim a win without sparking a major trade war. With political and economic stakes high, EU diplomats believe an agreement is likely before July 9, though some say it could come even earlier to coincide with the Fourth of July.