With the 9 July deadline fast approaching, the European Union is racing to secure a trade agreement with Washington in a bid to avert steep tariffs on its exports. In an effort to advance the negotiations, EU Trade Chief Maroš Šefčovič has travelled to Washington for final talks with President Donald Trump’s administration before the deadline expires.
But as Šefčovič prepares for the uphill task of securing a deal with President Donald Trump’s administration, tensions are already flaring on the European side – and none more so than from French President Emmanuel Macron, who has sharply criticised aggressive tariff policies as “blackmail.”
Speaking at a conference in Seville this week, Macron didn’t mince his words.
While stopping short of naming the US directly, he went close. “Barriers and tariffs, devised by the strongest, are often used as instruments of blackmail, not at all as instruments of rebalancing,” he said, calling for a more equitable global trade system.
Macron's criticism reflects mounting European frustration with Trump’s hardball tactics, which some see as less negotiation and more coercion.
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Avoiding a trade war
Sefcovic, vice-president of the European Commission and now tasked with trying to avert a transatlantic trade war, is heading into a particularly fraught moment.
The US has given the EU until 9 July to reach a trade agreement – or face hefty new tariffs on a wide swath of European goods.
If talks collapse, tariffs on EU exports could double to 20 percent, or even reach 50 percent, according to past threats by Trump.
"The ninth of July is around the corner," Sefcovic acknowledged in Brussels on Monday.
He’s set to hold meetings on Wednesday and Thursday in Washington, hoping to squeeze negotiations into a tight window before the US Independence Day holiday on 4 July pauses official business.
But progress so far has been limited. While both sides are reportedly working towards a framework agreement, EU diplomats say the latest US proposal was strikingly one-sided – outlining demands from Washington with little in the way of reciprocal concessions.
Sefcovic described the talks so far as “intense,” but it’s clear the EU faces a delicate balancing act.
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Time is running out
Brussels is pushing for immediate tariff relief in sensitive sectors such as automobiles, pharmaceuticals, semiconductors, and medical technology.
These industries have been in the Trump administration’s crosshairs, with new duties looming unless a deal can be struck.
EU negotiators are also demanding the rollback of existing 25 percent tariffs on steel and aluminium, which were raised to 50 percent in June.
Time, however, is running short. A technical EU team is already in Washington, and Sefcovic is joined by the Commission president’s chief of staff, Bjoern Seibert.
The goal: lock in a deal that prevents further damage while safeguarding Europe’s key economic interests.
Even if an agreement is reached, Brussels is bracing for what it calls an “asymmetric” outcome – likely accepting some level of US tariffs to avoid an all-out trade war.
If talks falter, options are grim – accept a lopsided deal or prepare countermeasures.
“Bringing back a trade war and tariffs at this moment in the life of the planet is an aberration;" Macron added.
(With newswires)
