EU Pushes for Trade Agreement with U.S.
(MENAFN) European Commission President Ursula von der Leyen announced Thursday that the European Union is working around the clock to finalize a preliminary trade agreement with the United States aimed at minimizing tariffs.
Addressing attendees at the French-Italian Economic Forum in Rome, von der Leyen emphasized the need for economic stability to support businesses across the bloc.
"Because we believe tariffs are a lose-lose. A tax on industry. A tax on people," she stated.
While voicing optimism about progress, von der Leyen also acknowledged the changing nature of transatlantic ties, cautioning against assumptions of a full return to past relations.
"That is why we are also working hard to strengthen and diversify our trading relationships with others. Eighty percent of our trade is with partners other than the US," she said.
Despite this shift, she reaffirmed the significance of U.S.-EU economic links, noting that the U.S. still represents the EU’s largest trade and investment partner—accounting for 20% of its exports and roughly 3% of its GDP.
She highlighted that business leaders across Europe are calling for clarity and consistency in trade policy, given that millions of European jobs are tied to transatlantic commerce.
"This was a point I underlined in my recent phone call with President Trump. And, it is central to our negotiations," von der Leyen added.
She also reminded attendees that the EU maintains the world’s largest network of free trade agreements—spanning 76 nations—and said that amid global instability, an increasing number of countries are turning to Europe as a reliable partner.
Meanwhile, negotiations between Brussels and Washington continue, as both sides seek to settle a dispute over tariffs.
The conflict intensified in April when the U.S. imposed what it called “reciprocal” tariffs on most trading partners, later pausing them for 90 days to allow room for negotiation. The EU was hit with a 20% tariff.
Tensions escalated last month when President Donald Trump threatened to raise the tariff on EU goods to 50%, warning the hike would take effect on June 1 due to stalled talks.
However, following a call with von der Leyen, Trump agreed to delay the tariff hike to July 9.
This week, the U.S. administration extended that deadline again—this time to August 1—and began issuing formal notices to various countries, outlining the penalties they could face if deals are not secured.
Speaking Tuesday, Trump said there had been a noticeable shift in the EU’s negotiating stance: "They treated us very badly until recently. Now they're treating us very nicely. It's like a different world."
"We're probably two days off from sending them a letter. We are talking to them. I just want you to (know) a letter means a (tariff) deal," he added.
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