European Union negotiators have yet to secure a breakthrough in trade talks with the Trump administration and may now aim to extend current arrangements to avoid an increase in U.S. tariffs, according to six EU diplomats briefed on the situation.
While the EU had already abandoned hopes of reaching a comprehensive trade deal before President Trump’s July 9 deadline, it now appears unclear whether even a basic agreement in principle can be reached following recent discussions in Washington.
On Friday, the European Commission informed EU diplomats that the U.S. may consider “pausing” existing tariffs for countries that have struck preliminary deals, with the possibility of future tariff relief.
Absent such an agreement, general U.S. tariffs on imports from non-partner nations are scheduled to increase from 10% to the levels Trump announced on April 2. For the EU, this would mean a jump to 20%.
At one stage in the talks, the U.S. reportedly floated a 17% tariff on EU agricultural and food imports, according to the sources.
Two diplomats told Reuters that the Commission now seems focused on preserving the status quo, with the hope of negotiating further at a later stage. U.S. Treasury Secretary Scott Bessent confirmed on Thursday that negotiations will continue into the weekend.
“Progress was made toward an agreement in principle during this week’s talks,” a European Commission spokesperson said.
“After consulting with member states, the Commission will re-engage with the U.S. on the substance over the weekend.”
Currently, the EU faces U.S. tariffs of:
- 50% on steel and aluminum exports
- 25% on cars and car parts
- 10% on most other goods
The bloc has approved a 21 billion euro ($25 billion) package of countermeasures, though it has not yet implemented them. A second retaliatory package, initially valued at 95 billion euros, has since been reduced to 72 billion euros after internal lobbying by several EU countries, diplomats said.
EU officials had entered the latest round of talks with the realistic expectation that the U.S. would not reduce its baseline tariff below 10%, but had hoped for immediate relief in areas such as aircraft components, autos, and metals.
One EU diplomat described the situation post-talks as “highly uncertain and evolving,” while another characterized the mood as “pessimistic.”
