The EU is seeking a negotiated solution with Washington before 30% tariffs take effect. But only Trump can close the deal.
Brussels urges a “negotiated solution” as Trump holds the final say
On both sides of the Atlantic, tensions over trade duties continue to escalate. Will the final rate be 15%? Who will have the last word?
Like a high-stakes poker game, Donald Trump holds two key cards: time and uncertainty. August 1 is the deadline for the 30% tariffs to take effect, and businesses and governments alike are desperate to understand what the future holds. After the U.S.–Japan deal locked in a 15% rate, speculation is growing that Washington might offer the same to the European Union. But only Trump himself can bring the largest trade negotiation of his business and political career to a close.
Brussels refuses to back down
From Beijing, European Commission President Ursula von der Leyen reiterated the bloc’s stance: a negotiated solution is needed, and until then, “all other tools remain on the table.” She stressed that the EU has consistently pursued a bilateral agreement, yet despite intense talks and technical meetings, no resolution has been reached. That’s why “all other tools are on the table and will remain there until we get a satisfactory outcome.”
EU trade spokesperson Olof Gill remains optimistic. “I can only repeat that we are now focused on finding a negotiated agreement,” he said. But what would the deal look like? Reports suggest unilateral U.S. tariffs of 15% on EU imports. The effective rate would include the 4.8% most-favored-nation clause, making the hike less steep than it sounds, though exceptions remain at Trump’s discretion.
It’s all about the numbers
If implemented, the measure would impose tariffs on European goods sold in the U.S., while American products entering Europe would face either no new duties or tariffs just below 5%. As negotiations drag on, Brussels has approved retaliatory tariffs of up to 30% on U.S. goods, affecting an estimated €93 billion in trade. These would take effect on August 7 if Trump rejects Europe’s proposal.
ECB calls for swift resolution
Speaking from Frankfurt, European Central Bank President Christine Lagarde urged a quick solution to the tariff standoff. “We hope for a swift resolution to the issue,” Lagarde said during a press conference, adding that “less uncertainty would benefit everyone, including us.”
Confindustria raises concerns
Italy’s Confindustria has warned of the potential fallout. According to its research center, nearly €23 billion in Italian exports to the U.S. are at risk, along with approximately 120,000 jobs. While some of the losses could be offset by sales in other global markets, up to €10 billion, the blow would still be significant.
