EU and US Accelerate Trade Talks to Avert Tariff Crisis

The European Union and the United States are intensifying efforts to reach a trade agreement by July 9, following President Trump's delay of a proposed 50% tariff on EU goods. With USD 1.8 trillion annually at stake, both sides aim to prevent a trade crisis and bolster negotiations.

The European Union and the United States are ramping up their efforts to finalize a trade agreement by July 9, following a statement from EU Trade Commissioner Maros Sefcovic on Monday. The talks have gained momentum after US President Donald Trump postponed a looming 50% tariff on European goods.

Sefcovic highlighted the EU's commitment to rapidly advancing the negotiations, which are in response to President Trump's proposal to avert a trade conflict by delaying the hefty tariff previously threatened for June 1. EU Commission President Ursula von der Leyen has engaged with Trump, promising to approach the discussions with urgency.

The EU has proposed a 'zero for zero' deal to remove tariffs on industrial goods, including automobiles. However, the US demands maintaining a minimum 10% tariff baseline on most trading partners while keeping higher tariffs on steel and automobiles. With USD 1.8 trillion in goods and services exchanged annually, both economies recognize the high stakes involved.

(With inputs from agencies.)