The European Union said it agreed to accelerate negotiations with the US to avoid a transatlantic trade war days after President Donald Trump took advantage of the US and criticised the slowly fought talks.
“There’s a new driving force in negotiations,” Paula Pinho, a spokesman for the European Commission, told reporters Monday a day after Chairman Ursula von der Leyen spoke with Trump on the phone. “They agreed to both quickly track trade negotiations and maintain close contact.”
Following the call, Trump extended the deadline to hit the EU with 50% tariffs by more than a month to allow for more negotiations. “We got a really nice call and I agreed to move it,” Trump told reporters on Sunday.
I’ve been troubled by many problems so far, but there’s no clear path to finding a middle ground that will alleviate both issues. Europeans complain that it’s not clear what the US wants or even those who speak for the US president, saying the EU is unfairly targeting US companies in litigation and regulations.
EU trade chief Maros Sefcovic was expected to speak to U.S. Secretary of Commerce Howard Lutnick on Monday. The EU ambassador is also scheduled to hold a last-minute meeting on Monday, discussing the latest developments with the committee.
US and European equity index futures climbed alongside Asian stocks on Monday. The dollar has fluctuated since December 2023 after falling to its lowest level.
Trump’s 50% tariff threat reaches a US EU commodity deal worth $321 billion, cutting US gross domestic product by nearly 0.6% and increasing prices by more than 0.3%, according to calculations from the Bloomberg economy.
After the first exchange of papers, the US last week The proposal has been submitted By a committee that handles trade issues on behalf of the 27 EU member states. The EU has jointly removed tariffs on industrial products, increased access to some American agricultural products, and offered to jointly develop AI data centers, Bloomberg reported.
The EU says its priority is to find a solution negotiated with the US, but is also preparing to retaliate if necessary.
The EU has approved tariffs on US goods of 21 billion euros ($23.9 billion) in response to the rapid-fire Trump metal tax. They target politically sensitive American states and include home to Louisiana speaker Mike Johnson, and products such as agricultural products, poultry and motorcycles.
The block is also preparing an additional list of tariffs for 95 billion euros American products. These measures address Trump’s “mutual” taxation and automotive duties, covering industrial products such as Boeing, US-made cars and bourbon.
Some member states are urging cool heads as tariff deadlines approach. German Economy Minister Katharina Reich said the EU and the US need to “settle” before talks.
“We need to find a common basis, and that must be the goal,” Reich said at the Handelsblatt event at Heilbronn on Monday. At the same time, she said, the US must realize that tariffs are also hurting them. “We still have six weeks left to find a solution,” Reich said.
This story was originally featured on Fortune.com.
