Trump plans to dispatch a dozen missives to trading allies on Monday, focusing on the ongoing trade dispute. - Trump intends to dispatch approximately twelve letters to trade counterparts, engaging in customs disputes, on Monday.
In the ongoing saga of international trade negotiations, the anticipated US-EU agreement is expected to take a unique turn. After weeks of intense negotiations, a framework deal rather than a comprehensive detailed treaty is likely to be the outcome by the initial July 9, 2025 deadline.
The complexity and volume of trade between the US and EU have made a complete detailed trade deal seem unattainable within the given timeframe. However, both parties are optimistic about reaching a mutually beneficial agreement.
The framework deal, if agreed upon, will maintain a 10% base tariff, along with existing tariffs on autos, steel, and aluminum. Higher tariffs on €8 billion worth of EU goods, threatened by the US, are scheduled, but have been delayed to mid and late 2025.
The US might offer exemptions on certain goods to facilitate agreement, while the EU could agree to ease some regulatory trade barriers. The talks are described as difficult, but both sides have agreed to fast-track negotiations and maintain close contact following extensions of deadlines.
The final deal could involve the US retracting its more extreme tariff threats beyond 10% while keeping protections for domestic industries, framed as a “win” for the Trump administration.
Meanwhile, a trade deal with the UK has already been finalized and implemented on June 30, 2025, at the G7 summit. This agreement has reduced tariffs on key sectors like cars and aerospace products.
The EU has suspended its counter-tariffs but is preparing for further tariffs on US goods should an agreement not be reached. The EU seeks to avoid escalation in the trade dispute and has demonstrated its willingness to negotiate in good faith.
Trump's tariff policy on European goods currently stands at 25% for certain products like cars and 50% for steel and aluminum products. The President has threatened the EU with a 50% tariff increase if they don't reach an agreement by Wednesday.
As the deadline approaches, the world watches with bated breath as the US and EU continue their negotiations, hoping for a resolution that will benefit both economies and maintain the harmony in international trade relations.
On Monday, President Trump, while aboard Air Force One, is expected to announce his intention to send letters to China and the EU, outlining America's proposed framework for the ongoing customs dispute. In the letters, he will probably propose that the twelve-day extension for negotiations be utilized to achieve a mutually beneficial agreement, steering clear of war-and-conflicts and focusing on policy-and-legislation, as well as maintaining a focus on general news. The ongoing dispute between the US and the EU has not only Brought Trump's tariff policy into question but has also highlighted the complexities of international trade and politics.
