Keep knowledgeable with free updates
Merely signal as much as the EU commerce myFT Digest — delivered on to your inbox.
A last EU-US commerce deal is “unattainable” earlier than July 9, so the 2 sides are aiming for a much less detailed “settlement in precept”, European Fee president Ursula von der Leyen mentioned on Thursday forward of talks in Washington.
The EU and US are edging nearer to a tentative settlement following virtually three months of negotiations to avert Donald Trump’s menace to impose 50 per cent tariffs on items from the EU subsequent week.
“It’s an enormous activity as a result of we now have the most important commerce quantity globally between the EU and the US, €1.5tn [annually] — very complicated and an enormous amount,” she advised a press convention.
“What we’re aiming at is an settlement in precept,” she added, saying the 90 days that have been allowed for talks made “an settlement intimately unattainable”.
The UK had additionally agreed to an settlement in precept with the US, she mentioned. “So far as I’m knowledgeable there are solely two nations to this point which have concluded with an settlement in precept.” The US introduced a cope with Vietnam on Wednesday.
Nonetheless, each offers left US “reciprocal” tariffs in place. Vietnam accepted 20 per cent and the UK 10.
EU commerce commissioner Maroš Šefčovič is in Washington right now for talks to push for a deal earlier than the July 9 deadline, after which Trump has threatened to extend “reciprocal” tariffs to 50 per cent. He’ll meet US Treasury secretary Scott Bessent, after which collectively commerce secretary Howard Lutnick and commerce consultant Jamieson Greer.
Lutnick has mentioned that nations with out offers will get elevated tariffs after July 9.
EU diplomats have advised the Monetary Instances that the bloc will in all probability settle for 10 per cent across-the-board levies however nonetheless needed to get cuts to the sectoral tariffs on merchandise similar to metal, at 50 per cent, and automobiles and automobile elements at 25 per cent.
It was keen to commit to purchasing extra US items to chop its commerce surplus.
Friedrich Merz, the German chancellor, who’s beneath enormous stress from his automobile business, repeated his name final week for a swift deal.
“This isn’t a couple of finely crafted, complete commerce settlement with the USA negotiated right down to the final element,” he mentioned.
“What’s at stake right here is the fast decision of a customs dispute, notably for our nation’s key industries — the chemical business, the pharmaceutical business, mechanical engineering, aluminium, metal and the automotive business . . . We want a fast outcome now. Higher fast and easy than lengthy and complex, with negotiations dragging on for months.”
The UK secured a quota of 100,000 vehicle exports annually with 10 per cent tariffs. UK exports of jet engines and different aerospace elements to the US are additionally spared from American levies.
It dropped its tariffs on bioethanol simply from the US, and elevated quotas for US beef imports.
US tariffs cowl about €380bn of annual EU commerce with the US, equal to about 70 per cent of the full.
America is contemplating extending larger sectoral levies to items together with copper, lumber, aerospace elements, prescribed drugs, chips and demanding minerals, which might cowl virtually all EU commerce.
