European leaders are racing against time to secure a trade agreement with the United States, hoping to dodge President Donald Trump’s threat of imposing 50% tariffs on EU goods. The urgency follows Trump’s announcement on his Truth Social platform, where he expressed frustration over the EU’s trade surplus with the US, initially threatening to implement the tariffs by June 1. However, after a crucial phone call on Sunday with European Commission President Ursula von der Leyen, Trump agreed to delay the tariffs until July 9, giving both sides a narrow window to negotiate.
The push for a deal has gained momentum across Europe. Italian Prime Minister Giorgia Meloni, who has built a strong rapport with both Trump and von der Leyen, took a leading role by holding an emergency call with Trump on Friday and urging von der Leyen to prioritize negotiations over confrontation. Meloni’s diplomatic efforts highlight her position as a bridge between Washington and Brussels. She even proposed a summit next month with leaders of major EU economies, top commission officials, and Trump, possibly during his visit to the Netherlands for the NATO summit on June 24-25.
Other EU nations, including France, Spain, Ireland, and Belgium, have also voiced support for fast-tracked talks to prevent a transatlantic trade war. French President Emmanuel Macron called the dialogue between Trump and von der Leyen a “good exchange” and expressed hope for lower tariffs to foster productive trade. Spain’s Foreign Minister José Manuel Albares noted that negotiations are moving in the “right direction,” while Ireland’s Simon Harris emphasized protecting jobs and investments, particularly in industries like pharmaceuticals that are vulnerable to US tariffs. Belgium, with its export-driven economy, praised von der Leyen’s “constructive” approach.
The European Commission, led by von der Leyen, is in high gear. EU Trade Commissioner Maroš Šefčovič is set to continue discussions with US Commerce Secretary Howard Lutnick, with a second call scheduled within days. Von der Leyen’s team is coordinating closely with EU member states, which have already approved a €21 billion retaliatory tariff package on US goods like maize, wheat, motorcycles, and clothing, set to take effect on July 14 if no deal is reached. The EU is also preparing a broader €95 billion list targeting US products, including Boeing aircraft, cars, and bourbon whiskey.
This isn’t the first time Trump has rattled the EU with tariff threats. On April 2, dubbed his “liberation day,” he announced a 39% tariff on EU imports, only to scale it back later before escalating again with the 50% threat. The EU, the world’s largest trading bloc with nearly 450 million people, exported over $600 billion in goods to the US last year while importing $370 billion, creating a trade surplus that Trump has long criticized. He has repeatedly called the EU an economic rival, claiming it was “formed to screw the United States.”
Tensions between the US and EU extend beyond trade. Trump’s administration, including Vice President J.D. Vance and close adviser Elon Musk, has expressed skepticism about Europe’s values and policies, from free speech to defense spending on issues like the war in Ukraine. Despite these challenges, the EU remains committed to dialogue. As Šefčovič put it, EU-US trade must be guided by “mutual respect, not threats.”
The delay in tariffs sparked a rally in European markets, with the euro reaching its highest level against the dollar since April 30 and European shares rebounding. For now, the EU is banking on diplomacy to avert a costly trade war, but with the July 9 deadline looming, the clock is ticking.