EU Weighs Swift Deal or Retaliation as Trump’s 50% Tariff Deadline Nears

Report by “Safarti Tarjuman” International News Desk

BRUSSELS — As the July 9 deadline approaches, European Union leaders are grappling with whether to pursue a rapid trade agreement with the United States or prepare a tough counter-response to former US President Donald Trump’s threat of imposing 50% tariffs on EU goods.

European Commission President Ursula von der Leyen is scheduled to brief EU heads of state Thursday evening during a working dinner on progress in trade negotiations with Washington. The Commission, which manages EU trade policy, is seeking clear guidance on how to proceed in discussions that could impact millions of jobs and key industries across the continent.

At present, most EU exports to the US are subject to a 10% tariff, with even higher rates of 25% on automobiles and car parts, and 50% on steel and aluminium. Trump has warned that if no deal is reached by July 9, he will apply a blanket 50% tariff on all EU goods.

German Chancellor Friedrich Merz threw his support behind the Commission’s efforts, saying: “I support the Commission in all its endeavors to secure a trade deal with the USA quickly.”

Ireland’s Prime Minister Micheál Martin emphasized the need for certainty, stating: “A deal is critical to provide a predictable landscape for industry and to safeguard jobs, which remains our top priority.”

Spain’s Prime Minister Pedro Sánchez, however, was more forceful, describing Trump’s tariff threats as “doubly unfair” given Spain’s trade deficit with the United States. Trump had recently threatened Spain with higher tariffs after Sánchez declined to commit to NATO’s 5% defense spending goal.

Diplomatic sources say pessimism is growing over the prospects of rolling back the existing 10% baseline tariff. Two distinct strategies have emerged: one favoring a swift, compromise deal to protect business confidence, and another pushing for a more aggressive response.

“Do we go into aggressive retaliation mode or do we take a pragmatic route for a quick deal?” summarized one EU diplomat.

The EU has proposed a zero-for-zero industrial goods free-trade agreement, but Washington has shown little interest, while continuing to criticize EU policies on digital markets and VAT rules. Von der Leyen reiterated this week that there would be no changes to the EU’s Digital Markets Act, which affects major US tech companies.

“We can discuss tariffs and standards, but anything impacting the EU’s sovereign decision-making is non-negotiable,” she told reporters.

Belgian Prime Minister Bart De Wever warned against escalation, saying: “We will not be provoked. We will negotiate and hope for an agreement. If not, we will adopt countermeasures, but these will be proportionate.”

To allow negotiations to continue, the EU has suspended duties on €21 billion worth of US goods until mid-July. However, consultations have started on a possible new round of retaliatory tariffs, potentially targeting €95 billion in US products, though the final figure is likely to be smaller. Notably, the EU previously dropped plans to target American bourbon after concerns from France and Ireland over retaliatory hits to French cognac and Irish whiskey.

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