The European Commission president, Ursula von der Leyen, has announced that the EU is open to a trade deal with the US. However, she emphasized that all options remain on the table.
What Happened: Von der Leyen stated that the EU is prepared for a trade agreement with the US, but is also considering other possibilities. She made this announcement after briefing EU leaders at a summit in Brussels, reported The Guardian on Thursday.
“Our message today is clear, we are ready for a deal,” stated the EU Chief. “…we will defend the European interest as needed. In short, all options remain on the table,” she added.
Von der Leyen also proposed initiating a "redesign" of the World Trade Organization, citing concerns that trade wars and bilateral agreements are weakening the global trading system.
The European Commission, which represents the EU’s 27 member states in trade matters, is seeking guidance on how to approach the crucial negotiations with the US. President Donald Trump has threatened to impose a 50% tariff on all EU goods from July 9 if an agreement is not reached.
Despite the looming deadline, there are differences of opinion within the EU on how to best approach the U.S. talks. German Chancellor Friedrich Merz believes a swift and simple trade deal is preferable to a slow and complex one. However, French President Emmanuel Macron contends that agreeing to an imbalanced trade relationship would undermine Europe's long-term competitiveness.
Why It Matters: The EU’s readiness to negotiate comes in the wake of Trump’s decision to extend the impending 50% tariff deadline from June 1 to July 9, 2025. Trump stated that von der Leyen assured him that negotiations would commence swiftly, and he expressed his willingness to grant the extension.
U.S. President Donald Trump has warned that starting July 9, all EU goods could face a 50% tariff unless a trade agreement is reached. Currently, most EU products are subject to a 10% tariff, while cars and car parts face 25%, and steel and aluminum are taxed at 50%.
Earlier in June, at the G7 summit, von der Leyen criticized China for its export restrictions on vital raw materials used in the production of cars, batteries, and wind turbines. She accused China of “weaponizing” its dominant position in the production and refining of critical raw materials and flouting global trade regulations to undercut rivals.
These developments underscore the EU’s commitment to fair trade practices and its readiness to defend its economic interests. As the deadline for Trump’s tariffs nears, EU member states are debating their approach to the U.S. talks.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
