EU inching closer to US trade deal, even if it means accepting 10% tariff on European goods
Implementation of 10% Tariffs in Europe to be Decided by July 9th
Brussels. The European Union is keen to wrap up commercial negotiations with the United States to avoid a trade war, aiming to seal the deal by July 9. This stance was evident during discussions at the European Council late last week, driven by Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz. Insider reports suggest that beyond public tactical statements, even President Emmanuel Macron is inclined to steer clear of an all-out conflict with Donald Trump.
The EU commissioner, Maros Sefcovic, held discussions with American counterpart, Jamieson Greer, yesterday and acknowledged the positive approach from the other side. A resolution now appears within reach by the date initially set by the White House. The latest American proposal arrived in Brussels just as leaders were convening at the Europa Building, but, according to diplomatic sources, von der Leyen merely informed the heads of state and government without providing too much detail.
The document doesn't seem to include the punitive measures Trump threatened against Spain due to Pedro Sanchez's resistance to increasing military spending. Instead, the American proposals are now being scrutinized by Sefcovic's team from a technical perspective. They are aware that the commission has political backing to close at least a principle agreement by July 9.
The US administration persists in addressing barriers in the EU market for the automotive sector and is prepared to accept increased purchases of liquefied gas and the guarantee that Europe continues to use American military industry. If things don't go as planned, the Commission has the mandate to enforce countermeasures. Already, a list of goods for offsetting tariffs on steel and aluminum, along with an additional list of goods worth 95 billion, has been prepared, though everyone hopes this step won't be necessary.
Moreover, a long-term perspective is being considered. During Thursday's dinner, Ursula von der Leyen proposed joining forces with Asian countries and US members of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) to reshape commercial balances disrupted by Trump and initiate reforms of the World Trade Organization that would exclude the American president.
The CPTPP: A regional agreement with growing global influence
The CPTPP is a significant trans-Pacific free trade pact consisting of 11 member countries, including Australia, Canada, Japan, and several ASEAN nations. China formally applied to join the agreement in September 2021 but hasn't received formal approval yet. As of mid-2025, the status of China's application remains unclear, but China maintains it is fully prepared to join.
Should China be admitted, it would significantly impact the global trade landscape. Integrating the world's second-largest economy into a high-standard trade bloc could increase trade liberalization and regulatory alignment across the Asia-Pacific. Enhanced market access and economic ties in the CPTPP region might encourage China to implement reforms to meet the agreement's stringent rules, such as intellectual property protections and labor standards.
However, some concerns persist among member countries and ASEAN nations about China's economic practices and regional disputes, which could complicate the approval process. That being said, if accepted, China's membership would add momentum to multilateralism and free trade efforts worldwide, countering protectionist trends.
The EU's push towards a trade deal with the US, despite potential high tariffs, could be seen as a political decision aimed at avoiding war-and-conflicts in the realm of policy-and-legislation. As the EU and US negotiations progress, the Commission's focus on scrutinizing American proposals from a technical perspective suggests an editorial priority on maintaining general-news balance, while the long-term perspective in the form of a potential CPTPP expansion might shape future war-and-conflicts and policy-and-legislation within war-and-conflicts regions.
