EU Leaders Shift Attitudes Towards Trade Pact with Trump Administration
European leaders have expressed a changing sentiment regarding the potential trade agreement with the Trump administration, acknowledging the likelihood of a 10 percent baseline tariff as a realistic outcome. Concerns have escalated that all goods could face a “reciprocal” 50 percent tariff by July 9 if negotiations fail, reports 24brussels.
An update from the European Commission is anticipated during a dinner meeting where leaders will discuss ongoing talks with the U.S. Following a recent NATO agreement to increase defense spending to 5 percent of GDP, Lithuania’s leader emphasized the need for the EU to leverage this positive momentum in transatlantic relations.
After the NATO summit in The Hague, he noted, “there is more understanding about our challenges and we understand better the American approach. Right now we have very positive momentum and we have to use it to strengthen this transatlantic relationship.”
As the deadline approaches, apprehensions arise about the quality of any last-minute deal. Some member states, particularly Germany, are advocating for a swift resolution, while others like France are cautious about entering agreements which may not be favorable.
An EU diplomat commented, “A full agreement on tariffs in such a short time is complicated. The only thing that is possible before July 9 is an agreement in principle — like the one reached with the U.K. and China — based on some principles. The question is: What are these principles?”
