EU Prepares for Trade Talks with US Amid Uncertainty

The European Union is working closely with US President Donald Trump's administration to reach a trade deal, but Brussels is getting ready for all scenarios, European Commission President Ursula von der Leyen has said.

Addressing the European Parliament this morning, she said the EU will \"stick to our principles.\"

\"We defend our interests, we continue to the work in good faith, and we get ready for all scenarios\", Ms von der Leyen said.

A deadline to reach an agreement on a deal had initially been set for today, when steeper levies on goods were due to be imposed.

However, the US delayed the date on which so-called \"reciprocal tariffs\" affecting dozens of economies, including the EU, until 1 August, with US President Donald Trump saying there would be no further delay on the higher rates.

Mr Trump yesterday said he is planning to announce tariffs on imported semiconductor and pharmaceuticals, adding that the rate for medicines could reach 200%. He said would give drug makers about one year \"to get their act together\".

Mr Trump also said he is probably two days off from sending the European Union a letter disclosing the tariff rate on their exports to the US.

Donald Trump outlined a range of so-called 'reciprocal' tariff rates earlier this year.

The European Commission's spokesperson on Trade and Security earlier said the EU would like to see a deal in principle on trade with the US ahead of a 1 August deadline, in order to provide some sort of certainty.

Speaking on RTÉ’s Morning Ireland, Olof Gill said there is a lot of confusion to try and decipher in talks with the US.

\"We're in the mode of trying to focus on what the Americans actually say in our negotiations,\" he said.

The EU’s trade commissioner Maroš Šefčovič made good progress on a number of files during his visit to Washington last week, Mr Gill said, adding that the EU is scrupulously consulting with member states to ensure everyone is on the same page.

\"Right now, we're simply trying to continue the intensive negotiations we had with the Americans that were building up towards the 9 July deadline, and ideally would still like to get something over the line as soon as possible, well before 1 August,\" he said.

Mr Gill said he could not put figures on anything yet, but European Commission President Ursula von der Leyen would present a more detailed state of play to the EU parliament this morning.

\"We have made good progress on a number of files, and we are consulting with our member states so that they are on board with what we're doing, and we're trying to reach an agreement that will cause the minimum amount of damage and allow us to have some sort of certainty going forward, for businesses, for traders.\"

He added that an agreement in principle would provide some sort of certainty for the general trading picture and allow the EU to look \"sector by sector\" at where the talks go next.

The EU is currently subject to a baseline tariff rate on goods of 10%, however faces a higher rate of 20% and possibly more if no deal is reached ahead of 1 August.