The European Union and the United States believe that they can reach a tariff agreement before the deadline in July

The European Union and the United States believe they can reach some form of trade agreement before the July 9 deadline. According to media reports, European Commission President Ursula von der Leyen expressed confidence to EU leaders during a closed-door meeting at Thursday's summit that an agreement could be reached before the deadline to avoid a vicious economic escalation. Von der Leyen stated that the Trump administration proposed a new plan this week. During the discussions, the attitudes of the attending leaders shifted, with many expressing a willingness to accept some degree of imbalance in the agreement to avoid escalation. After the summit on Thursday, von der Leyen told reporters: “We are ready to reach an agreement—while also preparing for the possibility of not reaching a satisfactory agreement. In short, all options are on the table.” Media sources cited informed individuals indicating that the leaders' debate on Thursday did not clarify how much inequality EU countries were willing to accept. The EU has been seeking a mutually beneficial agreement and will determine the acceptable level of asymmetry when the final results are announced. For this reason, the EU is preparing countermeasures while negotiating, in case the negotiation results are unsatisfactory and may require rebalancing the agreement in response to key industries. Following this news, European stocks rose further, with the Stoxx Europe 600 index up 1%. The benchmark index had risen 0.7% before the announcement. German government bonds saw a slight decline, with the two-year bond yield rising to 1.87%. On Friday, during U.S. trading hours, the euro maintained a 0.2% gain against the dollar, trading at 1.1720. U.S. Secretary of Commerce Lutnick also expressed similar views in a media interview on Thursday, stating that the EU has accelerated negotiations in recent weeks, laying the groundwork for an agreement. “Europe is doing very well; they are working hard. I am optimistic—I think we can reach an agreement now. Since the EU is the largest trading partner of the U.S., and the relationship is deep and complex, it is reasonable to reach an agreement with the EU in the final stages of the negotiation process.” According to a previous report by Xinhua News Agency, currently, the U.S. imposes a 50% tariff on EU steel and aluminum products, a 25% tariff on the automotive sector, and a 10% baseline tariff on almost all other goods. President Trump has also threatened to impose a 50% tariff on EU goods if there is no breakthrough in U.S.-EU trade negotiations before July 9. In response, the EU decided to impose tariffs of up to 50% on U.S. imports totaling €21 billion. These tariffs target politically sensitive U.S. states, including soybeans from Louisiana, the home state of House Speaker Mike Johnson, as well as agricultural products, poultry, and motorcycles. The EU has also prepared an additional tariff list involving €95 billion worth of U.S. products in response to Trump's so-called "reciprocal tariffs" and automotive tariffs. These tariffs target industrial goods, including Boeing aircraft, U.S.-made cars, and bourbon whiskey. The EU is also consulting with member states to identify strategic areas where the U.S. relies on the EU and is exploring other possible measures beyond tariffs The European Union estimates that U.S. tariffs currently cover about 70% of its total exports to the U.S., amounting to approximately €380 billion (equivalent to $445 billion). U.S. President Trump often criticizes the EU, claiming that its purpose is to "trap" the U.S., and accuses it of imposing trade barriers on American products and maintaining a trade surplus. According to previous media reports, EU officials believe that the best outcome of the current negotiations is to reach a principled agreement, allowing discussions to continue after July. Since the acceleration of negotiations, the U.S. and EU have been engaged in in-depth discussions in key areas, including steel and aluminum, automobiles, pharmaceuticals, semiconductors, and civilian aircraft, while also covering topics such as tariffs and non-tariff barriers, strategic procurement, and economic security