EU's Guindos hopes for US-EU trade agreement by July 9.

EU's Guindos hopes for US-EU trade agreement by July 9.

The European Union (EU) and the United States (US) are inching closer to a potential trade agreement before the July 9 deadline, according to recent statements from top officials. European Commission President Ursula von der Leyen and US Commerce Secretary Howard Lutnick both expressed confidence that a deal could be reached to avoid an economically damaging escalation of tariffs [1].

Von der Leyen, speaking at a Thursday summit, stated that she was confident a deal could be struck before the deadline, citing a new proposal from the Trump administration. The shift in tone among EU leaders indicated a willingness to accept some degree of imbalance in the trade agreement to avoid further escalation [1]. Lutnick echoed this optimism, noting that the EU had accelerated the pace of negotiations and was laying the groundwork for an accord [1].

The EU has been preparing countermeasures in case negotiations yield unsatisfactory outcomes. The bloc has approved tariffs on €21 billion of US goods in response to Trump's metals levies and is consulting member states to identify strategic areas for additional measures. These countermeasures target politically sensitive American states and include products such as soybeans from Louisiana and agricultural products [1].

French Finance Minister Eric Lombard has also called for an extension of EU-US trade talks beyond the July 9 deadline, stating that he would rather have a good deal than a bad one on the deadline [2]. He suggested that energy, specifically US gas imports, could be part of the trade deal.

The EU estimates that US duties now cover €380 billion ($445 billion) of its exports to the US, about 70% of total exports. The bloc is seeking a mutually beneficial agreement, but it is prepared to accept some asymmetry in the deal [1].

The potential trade agreement comes as the US is set to impose a 50% tariff on nearly all EU products and the EU plans to unleash its own series of countermeasures if no deal is reached by the deadline [1]. The US has already implemented a 25% tariff on cars and a 50% duty on steel and aluminum, and is working to expand tariffs on other sectors [1].

The EU's hope for a deal before the July 9 deadline underscores the importance of the US-EU relationship, which is the largest trading partnership in the world. A successful agreement could help stabilize global trade and avoid potential economic disruptions [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-06-27/eu-and-us-confident-they-will-reach-tariff-deal-by-july-deadline
[2] https://www.arabnews.pk/node/2606253/world