EU's von der Leyen: Preparing for potential breakdown in trade talks with US

EU's von der Leyen: Preparing for potential breakdown in trade talks with US

European Commission President Ursula von der Leyen has emphasized the EU's readiness to handle all eventualities in its ongoing trade negotiations with the US, including the possibility of a breakdown in talks. Speaking at a press conference following a summit in Brussels, von der Leyen stated that while the EU is open to a deal, it is also preparing for the likelihood that no satisfactory agreement will be reached [1].

The EU's deadline to reach an agreement with the Trump administration is July 9, when tariffs on nearly all of the bloc's exports to the US are set to increase to 50%. The US president has accused the EU of taking advantage of the US with its goods surplus and perceived barriers to American trade [2].

The EU has been grappling with whether to accept an asymmetrical trade deal or to retaliate against US tariffs, which could escalate tensions. Some EU member states, including Germany, have urged for a quick deal to avoid further escalation and protect key industries [2]. However, France has pushed for a complete removal of tariffs, stating that the bloc cannot be "naive, or weak, or both" if the US decides to keep 10% tariffs [2].

Detailed discussions are taking place on both tariffs and non-tariff barriers, as well as key sectors such as steel and aluminum, automobiles, pharmaceuticals, semiconductors, and civilian aircraft. The EU is seeking a mutually beneficial deal but is prepared to respond to any tariffs with countermeasures [2].

During the Brussels summit, the EU also set its sights on broader trade relations, agreeing in principle to sign a long-sought free trade agreement with the South American Mercosur bloc. Additionally, the bloc is considering launching a new international trade organization to supersede the "dysfunctional" World Trade Organization [2].

Von der Leyen's statement underscores the EU's determination to defend its interests while maintaining open lines of communication with the US. The bloc's preparedness for various scenarios highlights its strategic approach to trade negotiations.

References:
[1] https://www.bloomberg.com/news/articles/2025-06-26/von-der-leyen-says-eu-will-be-ready-if-us-trade-talks-break-down?srnd=homepage-americas
[2] https://financialpost.com/pmn/business-pmn/von-der-leyen-says-eu-will-be-ready-if-us-trade-talks-break-down