The European Union is intensifying efforts to secure a trade agreement with the United States before a looming August 1 deadline, as fears grow over steep new tariffs on European exports. European Commission President Ursula von der Leyen confirmed the bloc is working closely with the administration of U.S. President Donald Trump, while simultaneously preparing for all possible outcomes.
Speaking before the European Parliament this morning, von der Leyen stressed that the EU would remain firm on its core values throughout the negotiations. “We defend our interests, we continue the work in good faith, and we get ready for all scenarios,” she stated.
The U.S. had initially set July 9 as the deadline for a deal before activating “reciprocal tariffs” on a wide range of imported goods. However, the Trump administration extended the deadline to August 1, warning that there would be no further delays. The tariffs could see rates climb from the current 10% baseline to as high as 20% or more.
President Trump, speaking earlier this week, said his administration also plans to introduce steep tariffs on imported semiconductors and pharmaceuticals. He hinted that drug imports could face levies of up to 200%, while giving pharmaceutical firms a year to adapt.
Trump further noted that he was “probably two days off” from formally notifying the EU of the proposed tariff rates that would apply to their exports.
European Commission spokesperson for Trade and Security, Olof Gill, speaking on RTÉ’s Morning Ireland, acknowledged the uncertainty surrounding the talks. “We’re focusing on trying to interpret exactly what the Americans are saying,” he said, adding that the EU was still hoping to reach an agreement in principle before August to provide clarity to businesses and consumers.
Gill highlighted that EU Trade Commissioner Maroš Šefčovič had made “good progress” during recent meetings in Washington and that negotiations were continuing at a rapid pace. “We’re consulting very closely with our member states to make sure everyone is aligned,” he said.
He stressed that an agreement would help avoid further economic disruption. “We are trying to reach a deal that causes the minimum amount of damage and allows us to look ahead with some degree of certainty—sector by sector.”
President von der Leyen is expected to present a fuller update on the state of negotiations later today, but for now, both sides appear locked in tense talks with major consequences for transatlantic trade.
