EU Aims for Principled Trade Agreement with US by July 9

"Difficult to Finalize Detailed Negotiations Within the Deadline...
Pursuing at Least a Principled Agreement"

Yonhap News

The European Union (EU) is accelerating negotiations with the goal of reaching a principled agreement by July 9 (local time) in order to conclude a trade deal with the United States.

According to foreign media including AFP on July 7, Stefan De Keersmaecker, Chief Deputy Spokesperson for the European Commission, relayed news of a phone call between Ursula von der Leyen, President of the European Commission, and Donald Trump, President of the United States, stating, "We are working at all levels to reach an agreement."

Olof Gill, EU spokesperson for trade, also said, "We are making every effort to reach at least a principled agreement by Wednesday, July 9."

With the negotiation deadline approaching, the United States is increasing its pressure. Scott Besant, U.S. Secretary of the Treasury, warned that reciprocal tariffs would be reimposed from August 1 on countries where there has been no progress in negotiations. In response, spokesperson Gill drew a line, saying, "Whether that statement means an extension of the negotiation period is a question for the U.S. side."

President Trump previously announced in April that a 20% tariff would be imposed on EU imports, but postponed its implementation until midnight on July 9 (U.S. Eastern Time). In May, he stated that a 50% tariff would be imposed starting in June, but this was again delayed. As a result, if the two sides fail to reach an agreement by July 9, there is a possibility that a 50% reciprocal tariff will be imposed on EU products.

In negotiations with the United States, the EU aims to minimize the basic tariff, which applies uniformly to all countries and economic entities, to around 10%. However, the outcome that can be reached within the deadline is likely to be a provisional agreement on basic principles rather than a detailed agreement containing specific provisions. President von der Leyen also previously stated, "Because the scope of the negotiations is so broad, it will be difficult to finalize detailed coordination within 90 days."