EU Leaders Weigh Fast-Track US Trade Deal Amid Tar...

EU Leaders Weigh Fast-Track US Trade Deal Amid Tariff Pressures

Zim Now Writer

European Union leaders are meeting in Brussels today to decide whether to pursue a swift trade agreement with the United States—despite terms that currently favor Washington—or continue negotiations in hopes of securing a more balanced deal.

According to officials and diplomats, a growing number of EU member states appear to support a quick resolution to avoid escalating tensions. The move would allow the bloc to explore its own rebalancing tools in response to existing U.S. trade barriers.

“I support the Commission and the President of the European Commission in her efforts to boost competitiveness and secure a trade agreement with the USA as soon as possible,” said German Chancellor Friedrich Merz. “We also need to move forward with Mercosur and finalize additional trade agreements. Europe is entering a critical period.”

The European Commission, which leads trade negotiations on behalf of the 27-member bloc, is seeking direction from leaders on how to respond to U.S. President Donald Trump’s July 9 deadline for a deal—now less than two weeks away.

While Brussels has been aiming for a mutually beneficial agreement, the U.S. has shown no signs of backing down from its current 10% tariffs on most EU goods. Washington has also imposed tariffs of 50% on EU steel and aluminium and 25% on vehicles and parts, with the threat of further increases if talks stall.

Belgian Prime Minister Bart De Wever backed a diplomatic but firm approach: “A trade war makes both sides poorer and is simply foolish. If the result ends up being one-sided and unfair tariffs, then we must respond with proportionate and targeted countermeasures.”

The United States’ only finalized trade deal so far has been with the United Kingdom, which still faces the same 10% blanket tariff. U.S. trade officials have maintained that no partner should expect a lower rate.

Following the recent NATO summit in The Hague, 23 of the 27 EU leaders arrived in Brussels under pressure to avoid igniting a parallel economic conflict with the U.S.

“There’s a group of countries willing to accept the 10% baseline tariff, as it’s become something they’ve grown used to,” said one EU diplomat, noting a shift toward pragmatism among member states.

While favoring a quick deal, the EU is also considering a series of rebalancing measures. One such option is a digital advertising tax targeting major U.S. tech firms—including Google, Meta, Apple, Microsoft, and X—which could reduce the U.S.’s services trade surplus with the EU. The bloc, in contrast, enjoys a goods trade surplus with the U.S.

The EU has so far approved, but not implemented, tariffs on US$21 billion worth of U.S. goods and is debating additional duties on imports worth up to $95 billion. However, some EU countries are advocating for a softer stance.

The European Commission has floated a proposal to eliminate tariffs on industrial goods on both sides, coupled with increased EU purchases of U.S. liquefied natural gas and soybeans. Washington, however, has shown limited enthusiasm, instead spotlighting EU regulations—such as VAT policies, environmental standards, and digital rules—as trade barriers.

Separately, EU leaders are working to address the concerns of Slovakia and Hungary, which have been hesitant to support the bloc’s 18th package of sanctions against Russia. Their objections stem from the EU’s plan to end Russian gas imports by 2027.

Diplomats say assurances on energy security being offered during the summit could help win the support of both countries for the latest sanctions package.