EU, US continue trade talks, avoid tariff escalation

European Commission President Ursula von der Leyen and US President Donald Trump had what they described as a “good” conversation over the weekend, as the two sides try to find common ground on trade ahead of a July 9 deadline.

The bloc’s top goal is to reach a bilateral deal with Washington to avoid additional tariffs that could hurt transatlantic trade, a Commission spokesman said.

“We want to reach a deal with the United States. We want to avoid tariffs. We believe that tariffs are painful. We want a win-win outcome, not a lose-lose outcome,” the spokesman said at a regular press briefing on Monday.

US increases trade pressure ahead of July 9 deadline
The Trump administration has repeatedly warned that it will send letters announcing tariffs to trading partners that have not reached an agreement if negotiations are not completed by July 9. The new tariffs will take effect from August 1, 2025, potentially affecting sectors such as the auto industry, steel and agricultural products from Europe.

The move is seen as part of the Trump administration's "domestic first" trade policy, aimed at protecting US manufacturers, but at the same time raises concerns about a new round of confrontation in the US-EU relationship, which is already experiencing many simmering tensions.

Impact on the market and investor expectations
Analysts say that if an agreement is not reached, the market could see a short-term negative impact on the euro, as well as the stock prices of major European exporting corporations, especially in the manufacturing and consumer goods sectors.

However, the possibility of an interim or “bridge” deal remains, given the shared interest in stabilizing trade and avoiding disruptions to global supply chains amid growing economic uncertainty.