EU leaders weigh US trade offer as tariff deadline looms

European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce.

As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters. “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise.

Internal EU divisions complicate talks

The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth.

According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge.

Tariffs overshadow broader summit agenda

The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings.

The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities.

Ukraine pressures Europe for stronger stance

Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership.

“What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade.

Uncertain path ahead

As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting.

With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage.

(With inputs from the agencies)