With less than a week to go before the 90-day reprieve on their reciprocal tariffs expires, the United States and the European Union have yet to iron out key components of a trade deal to avert a tariff war, CNBC reported Friday.
In April, the Trump administration imposed a 20% tariff on all goods coming in from the EU but shortly thereafter paused the taxes to allow 90 days for negotiations, which will expire July 8. While a 10% tariff remains in place for most items, a 25% duty on foreign cars, steels, and aluminum remains intact. The EU has paused its preliminary set of retaliatory measures, a response to the metals tax, which are aimed at roughly $21 billion worth of U.S. products.
The outlet spoke to sources earlier in the week that indicated any deal that could be hammered out in the remaining days would be broad in scope but short on substance. European Commission President Ursula von der Leyen agreed adding, "What we are aiming at is an agreement in principle." She said that a detailed agreement was "impossible" to be worked out during the 90-day window. Von der Leyen also warned that if a deal can't be reached, "all the instruments are on the table."
In May, the commission presented the EU a list of concessions it was prepared to make with Washington in addition to an updated list of products it will hit with tariffs if the negotiations fail. The EU and U.S. trade relationship is one of the world's most critical representing 30% of all trade and with nearly $1.98 trillion in good and services being exchanged in 2024. President Donald Trump has promised to reset global trade parameters and Friday an EU diplomat said the administration has recently threatened a 17% duty on agriculture and food exports.
European Trade Commissioner Maros Sefcovic posted on X this week that recent talks with the U.S. had gone well saying, "Heading back to Brussels - the work continues. Our goal remains unchanged: a good and ambitious transatlantic trade deal." U.S. Treasury Secretary Scott Bessent was more cautious in his tone telling CNBC's "Squawk on the Street" on Thursday, "We'll see what we can do with the European Union."
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.