EU Gears Up for Potential No-Deal on US Tariffs, Says European Commission

Mette Frederiksen, Denmark's prime minister, and Ursula von der Leyen, president of the European Commission, attended a European Council meeting in Brussels, Belgium. The European Union is preparing for the possibility of not reaching a satisfactory agreement with the United States in ongoing tariff negotiations, as stated by European Commission president Ursula von der Leyen. The bloc aims to avoid steep tariffs threatened by US president Donald Trump after July 9th.

Dr. von der Leyen mentioned that while they are ready for a deal, they are also preparing for the scenario where no satisfactory agreement is reached. EU leaders discussed their response to Trump's latest trade proposal after being briefed by the commission.

The EU needs to decide whether to accept an asymmetrical trade deal with the US or risk escalation by striking back. The deadline for reaching an agreement with Trump is July 9th, when tariffs on most of the bloc's exports to the US will increase to 50 per cent.

Discussions are ongoing on tariffs, non-tariff barriers, critical sectors, strategic purchases, and regulatory matters. The EU is hoping to address these issues through its simplification agenda. The best-case scenario is seen as an agreement on principles that would allow negotiations to continue beyond the deadline.

Trump has imposed tariffs on cars, steel, aluminum, and is looking to expand tariffs on other sectors. Many of these duties are expected to remain even with an agreement. The EU will assess the end-result and decide on the level of asymmetry it is willing to accept.

The EU's industry chief mentioned that the EU would need to respond to any tariffs with countermeasures. Some EU leaders have indicated they could accept certain levies for a quick deal that avoids further conflict.

According to the source: The Irish Times.