France Seeks US Trade Deal Extension Amid Energy Talks

France’s Finance Minister, Eric Lombard, has expressed optimism about reaching a trade agreement with the US, despite the looming deadline of July 9. Lombard, in an interview, emphasized the importance of securing a good deal rather than rushing into a subpar agreement. He also hinted at the possibility of including energy in the trade agreement, suggesting that the EU could increase its imports of US gas to compensate for the reduced supply from Russia.

Lombard's call for an extension of the EU-US trade negotiations comes as European officials are increasingly accepting a 10% “reciprocal” tariff imposed by Washington in April as the foundation for any potential deal. The extension request follows US President Donald Trump's establishment of a deadline for the trade talks, with warnings that failure to reach an agreement could result in higher US tariffs on a range of goods, including cars and pharmaceuticals.

Meanwhile, Trump has indicated that the trade talks are progressing well, stating that the US is in discussions with multiple countries, including South Korea, Japan, and the European Union. He also mentioned that the US plans to send letters outlining the terms of trade agreements to various countries in the coming weeks, giving them the option to accept or decline the proposed deals. Trump's comments suggest that the US is open to extending the deadline for countries that are negotiating in good faith, although he did not specify which countries this might apply to.

Scott Bessent, US Secretary of the Treasury, has also hinted at the possibility of extending the deadline for some countries, stating that the Trump administration could either delay the deadlines for the trade deals beyond July or bring the date forward for countries that have been negotiating sincerely. Bessent's comments are the first from a Trump administration official to signal that there might be some flexibility regarding the expiration of the pause date. He also noted that the European Union has shown better faith in recent negotiations, although he did not provide further details.

Despite the uncertainty surrounding the trade talks, Lombard's optimism and the potential for an extension of the deadline have sparked hope for a favorable trade deal between the two major trading partners. The inclusion of energy in the agreement could also have significant implications for both the US and the EU, as it would address the EU's need to diversify its energy sources and reduce its dependence on Russian gas.