The European Union said it agreed to accelerate negotiations with the US to avoid a transatlantic trade war, signaling a more amicable approach just days after President Donald Trump criticized the bloc for taking advantage of the US and slow-walking talks.
“There’s now a new impetus for the negotiations,” Paula Pinho, a spokeswoman for the European Commission, told reporters on Monday, a day after Commission President Ursula von der Leyen spoke with Trump by phone. “They agreed both to fast track the trade negotiations and to stay in close contact.”
Following the call, Trump extended the deadline to hit the EU with 50% tariffs by more than a month to July 9 to allow for more negotiations. “We had a very nice call and I agreed to move it,” Trump told reporters Sunday.
Talks so far have been beset with a multitude of problems, with no clear path to finding a middle ground that will appease them both. The Europeans have complained that it’s not clear what the US wants or even who speaks for the American president, and the US has said the EU unfairly targets US companies with lawsuits and regulations.
The EU’s trade chief, Maros Sefcovic, was expected to speak with US Commerce Secretary Howard Lutnick on Monday. EU ambassadors were also scheduled to hold a last-minute meeting on Monday to discuss the latest developments with the commission.
US and European equity-index futures climbed along with Asian stocks on Monday. The dollar fluctuated after falling to its lowest level since December 2023.
Trump’s 50% tariff threat would hit $321 billion worth of US-EU goods trade, lowering US gross domestic product by close to 0.6% and boosting prices by more than 0.3%, according to Bloomberg Economics calculations.
While the EU has said its priority is to find a negotiated solution with the US, it’s also been preparing to retaliate if necessary.
The EU has approved tariffs on €21 billion ($23.9 billion) of US goods in response to Trump’s metals levies that can be quickly implemented. They target politically sensitive American states and include products such as soybeans from Louisiana, home to House Speaker Mike Johnson, as well as agricultural products, poultry and motorcycles.
Some member states have been urging cool heads as the tariff deadline nears. German Economy Minister Katherina Reiche said the EU and US need “to calm down” ahead of the talks.
“We need to find common ground. That must be the goal,” Reiche said at a Handelsblatt event in Heilbronn on Monday. At the same time, the US must understand that tariffs also hurt them, she said. “There are still six weeks left to find a solution,” said Reiche.
