Golden Finance reports that according to Golden 10 Data, market sources say that the EU believes trade negotiations with the US will be extended beyond the July 9 deadline set by Trump, although the pace of negotiations has accelerated over the past week.
Insiders said that the EU believes the best-case scenario is to reach an agreement on the principles of the deal before July 9, which will enable both sides to further negotiate and finalize the details. It is expected that the United States will respond to the latest round of negotiations in the coming days and clarify its next steps.
Previously, on May 25 local time, after a phone call with European Commission President Ursula von der Leyen, US President Trump agreed to extend the deadline for imposing a 50% tariff on the EU to July 9. On May 23, prior to this, Trump had posted a threat to impose a 50% tariff on goods imported from the EU starting from June 1, in response to the EU’s “difficult dealing” in trade and the “no progress” in US-EU trade negotiations. This move marked an escalation of the risk of a transatlantic “trade war”, leaving the EU side stunned.
Since the United States suspended the imposition of a 20% “reciprocal tariff” on the European Union in April and opened a 90-day negotiation window, the two sides have held multiple rounds of consultations on trade issues. The negotiations between the two sides cover multiple areas such as tariffs, digital trade and investment opportunities. However, as of now, the progress of the negotiations has been rather slow. The European Union has approved the imposition of tariffs on 21 billion euros worth of US imports, but the implementation was postponed 90 days after the Trump administration announced the suspension of some tariffs. The European Union also warned that if negotiations with the United States break down, it will consider imposing tariffs on a second batch of goods worth up to 95 billion euros.
This time, the EU’s hope to extend the negotiation period may reflect that the two sides still have significant differences on key issues and have not reached an agreement yet. For the global trade market, the direction of the trade negotiations between the United States and Europe is of vital importance, and its outcome will have a profound impact on the global trade pattern, the development of related industries and market confidence.
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