With just days to go before President Donald Trump’s July 9 deadline, American and European negotiators are racing to finalize a limited trade agreement aimed at avoiding sweeping new tariffs on European goods.
The potential deal would delay resolution on deeper trade disputes and marks a sharp departure from long-standing U.S. support for multilateral trade frameworks, News.Az reports, citing foreign media.
The proposed agreement would exempt the European Union from Trump’s threatened 50% tariffs and instead impose a baseline 10% tariff, with Europe seeking to shield sensitive sectors like pharmaceuticals from further levies. Meanwhile, the U.S. is pushing for concessions, including carbon tax exemptions for American steelmakers.
The talks come amid Trump's broader strategy to bypass the World Trade Organization’s “most favored nation” rule and pursue bilateral or unilateral trade arrangements. Critics argue the move undermines global supply chains and injects instability into international commerce.
Despite announcing 90 trade deals in 90 days back in April, Trump’s administration has secured only two, with Vietnam and the U.K., and many proposed deals remain in limbo. The E.U., divided between a deal-seeking Germany and a more cautious France, may opt to delay, betting that Trump’s tariff-heavy approach could face political headwinds in the 2026 elections.
If no agreement is reached, Trump has said new tariffs will take effect August 1. European officials, while frustrated with China’s trade practices, warn that Washington’s approach risks fracturing the global economy and driving up costs for consumers and manufacturers on both sides of the Atlantic.
