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European capitals have hardened their position in trade talks with Donald Trump, insisting the US drops its tariffs on the EU immediately as part of any framework deal before the looming deadline on July 9.
Trade commissioner Maroš Šefčovič has been instructed to take a tougher line on a trip to Washington this week as Brussels tries to remove or at least substantially cut Trump’s levies in the long term.
Washington has indicated to Brussels that the most likely first-stage agreement is a UK-style phased deal that leaves some tariffs in place while talks continue, according to EU officials.
Ambassadors from EU member states on Monday asked for Šefčovič to insist that any such deal includes, from July 9, reductions in the current 10 per cent “reciprocal” tariff, according to four people briefed on the matter. They are also demanding reductions to higher sectoral levies.
In the UK case, US tariffs on cars and steel continued for some weeks after the initial agreement to allow lower duty or duty-free quotas.
The EU’s 27 members have struggled to display a united front during almost three months of talks. But European Commission president Ursula von der Leyen asked leaders at a summit on Thursday to endorse a tougher stance, according to the people.
All outcomes remained possible, they said, including a collapse in talks, which could result in the US reimposing either the 20 per cent tariff from April or the 50 per cent level threatened in May.
Another person briefed on the situation said the EU was still divided over whether to retaliate, reducing the incentive for the US to compromise.
German Chancellor Friedrich Merz called at the summit for a swift deal that would reduce tariffs on cars. But this week France’s finance minister said the deadline should be extended to get a better agreement.
EU companies have, since April, been subject to tariffs on €380bn of annual trade with the US, equivalent to about 70 per cent of the total.
That includes sectoral levies of 25 per cent on cars and their parts and 50 per cent on steel and aluminium.
The US is considering extending those to goods including copper, lumber, aerospace parts, pharmaceuticals, chips and critical minerals.
The EU has voted for retaliatory tariffs on €21bn of US exports but paused them until July 14. The commission is drawing up a new €95bn tariff package.
Šefčovič will hold talks on Thursday with US commerce secretary Howard Lutnick and US trade representative Jamieson Greer.
They will discuss a “two-page agreement in principle” from the US. This covers not just goods trade, but “non-tariff barriers” including digital regulation and food and product standards.
The Financial Times has reported that Washington is prioritising such agreements to avoid having to impose higher tariffs, but expects 10 per cent to remain in place during further talks.
“We are absolutely focusing on a positive outcome,” Šefčovič said. “It’s always a good time when we can move from the . . . exchange of views into the drafting process,” he told a press conference on Monday.
“We are the two closest allies and I believe that this should also reflect in our trade agreement.”
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The White House National Economic Council director Kevin Hassett told Fox News on Monday that several agreements would be announced soon after US Independence Day on July 4.
Lutnick said he expected to seal at least 10 deals before July 9, with extensions or tariff increases for those countries without an agreement.
Analysts in Washington said a president emboldened by the success of the UK deal and a partial truce with China was likely to dig in.
“The EU appears to be approaching this like a trade negotiation, which would be a colossal mistake. From the US perspective, this appears to be about negotiating the terms of surrender,” said Ted Murphy, a trade lawyer at Sidley in Washington.
Additional reporting by Barbara Moens in Brussels and Aime Williams in Washington
