EU-US Trade Talks Stall as Tariff Deadline Looms

The European Union faces a critical deadline to resolve a trade dispute with U.S. President Donald Trump, who threatens to impose tariffs as high as 50% on EU imports if no deal is reached by July 9. Talks between EU trade commissioner Maroš Šefčovič and U.S. Treasury Secretary Scott Bessent have been ongoing but have yet to produce a comprehensive agreement, leading the EU to consider extending the current tariff pause or seeking a more limited deal to avoid escalation. The EU is divided on strategy, with some leaders favoring a quick, UK-style sectoral agreement to prevent a trade war, while others, including French President Emmanuel Macron, advocate holding out for a more balanced and comprehensive deal. Trump initially imposed 20% tariffs on EU goods earlier in April but had paused them at 10% to allow negotiations; the suspension is set to expire, risking higher tariffs that would impact a wide range of products from cars to cheese. The uncertainty has caused economic disruption, with businesses delaying investments and the dollar weakening significantly. Even if an initial agreement is reached, the EU expects ongoing trade imbalances and may need to negotiate further sector-specific carve-outs to protect key industries like automotive and aerospace.