EU trade chief says US talks ‘advancing in the right direction’ amid looming 50% deadline

As transatlantic tensions rise, European Union Trade Commissioner Maros Sefcovic has offered a cautiously optimistic signal, saying that negotiations with the United States are “advancing in the right direction at pace.” With just over a month left until the proposed 50 per cent US tariffs on European goods take effect, his remarks have emerged as a rare note of progress in what has otherwise been a volatile phase in EU-US trade ties.

Sefcovic met US Trade Representative Jamieson Greer on the margins of the OECD Ministerial Council Meeting in Paris.

Taking to social media platform X (formerly Twitter), Sefcovic wrote, “Had a productive and constructive discussion with US Trade Representative Ambassador Greer… We’re advancing in the right direction at pace – and staying in close contact to maintain the momentum.”

His comment comes after a week of dramatic turns in US trade policy, marked by President Donald Trump’s renewed threats of higher tariffs and a last-minute decision to delay their implementation.

Trump delays 50 per cent tariffs after von der Leyen call

According to Reuters, the diplomatic tone between Brussels and Washington shifted significantly after a phone call between Trump and European Commission President Ursula von der Leyen on Sunday.

Trump, who had earlier declared that the EU was “stalling” and that talks were “going nowhere,” agreed to extend the deadline for the proposed 50 per cent tariffs to 9 July.

Announcing the decision on Truth Social, Trump said: “I agreed to the extension — July 9, 2025 — It was my privilege to do so.” He added that the EU had “called to quickly establish meeting dates,” calling it a “positive event.”

As quoted by Bloomberg, Trump said he hoped the EU would “open up the European Nations for Trade with the United States of America,” a line echoing his earlier demands to China during separate tariff negotiations.

The extension follows the end of a 90-day tariff pause announced in April, during which Trump’s administration had reduced duties on European imports from 20 per cent to 10 per cent.

However, frustration over EU regulations and ongoing lawsuits targeting American tech companies led Trump to threaten a sharp escalation to 50 per cent beginning June.

A framework for compromise?

Behind the scenes, both sides are working to prevent a breakdown. As reported by Bloomberg, the European Commission has submitted a new trade framework to the US, focusing on tariff reductions, regulatory cooperation, and strategic sectors such as semiconductors, electric vehicles, civilian aircraft, and pharmaceuticals.

According to sources familiar with the discussions, EU trade chief Maros Sefcovic will lead high-level political talks, while technical negotiators work simultaneously on tariff and non-tariff issues. The proposal also outlines joint initiatives to reinforce supply chain security and foster mutual investment.

The EU’s offer last week reportedly included tariff rollbacks, simplified customs procedures, and aligned standards in select sectors. However, as noted by Bloomberg, the US rejected the proposal at the time, prompting Trump’s initial threat of a tariff hike. Officials on both sides now suggest that parts of that proposal are being revisited.

Despite the progress, sticking points remain. Some EU member states have warned that any US demand undermining the bloc’s regulatory autonomy,particularly in areas like taxation and antitrust,would be a red line.

Economic impact

The urgency of the negotiations is underscored by the potential economic fallout. As per estimates cited by Bloomberg Economics, a 50 per cent tariff could affect approximately $321 billion in annual goods trade, shave 0.6 per cent off US GDP, and push up consumer prices by more than 0.3 per cent.

Markets responded swiftly to the temporary easing of tensions. US equity index futures rose in early Asian trading following Trump’s extension announcement, and the US dollar showed signs of recovery after recent volatility.

Still, many within the EU remain sceptical. According to Reuters, internal briefings suggest that Brussels is preparing contingency measures, including counter-tariffs on up to €95 billion worth of US products. These would target politically sensitive sectors such as soybeans, poultry, bourbon, and even Boeing aircraft.

A deal – or a deeper divide?

While talks are ongoing, a final agreement remains uncertain. According to EU diplomats quoted by Bloomberg, there’s still a lack of clarity on what Washington wants, and on who, within the Trump administration, is driving the negotiation line.

President Trump, meanwhile, has maintained that he reserves the right to “set a deal” if no agreement is reached, a reference to his authority to impose unilateral trade measures under his “America First” doctrine.

Whether this extension leads to a breakthrough or simply delays confrontation remains to be seen. But with just over a month left until the July 9 deadline, both Brussels and Washington are under mounting pressure to turn this fragile momentum into a concrete trade pact.