EU leaders met in Brussels this week with one major decision on the table—should they back a quick US trade deal or push for better terms?
With President Donald Trump’s July 9 deadline just days away, pressure is mounting. Many leaders now believe a quick agreement is the safest path forward, even if it favors Washington. The reason? Avoiding a full-blown trade war.
Why the Rush?
The U.S. has already slapped steep tariffs on EU goods—50% on steel and aluminum, 25% on cars, and 10% on most other items. Trump says those tariffs could go even higher if there’s no deal soon.
German Chancellor Friedrich Merz is among those pushing for speed. “I support the Commission in all efforts to reach a deal quickly,” he said. Merz also wants the EU to finalize other trade agreements like Mercosur while boosting its global competitiveness.
Belgium’s Prime Minister Bart De Wever echoed that sentiment, calling a trade war “stupid” and saying it would hurt both sides. Still, he warned that if the U.S. continues with unfair tariffs, the EU should hit back with “targeted countermeasures.”
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Rebalancing the Power
The European Union has already prepared a list of tariffs worth €21 billion on U.S. goods—but hasn’t imposed them yet. Another round of tariffs, possibly hitting €95 billion in U.S. imports, is under debate.
One of the most talked-about rebalancing measures is a digital ad tax that would affect tech giants like Google, Meta, Apple, and Microsoft. This would target the U.S.’s trade surplus in services, giving the EU a way to even the score.
At the same time, the European Commission has proposed cutting tariffs on industrial goods to zero and increasing EU purchases of American liquefied natural gas and soybeans. Washington, however, seems more focused on removing what it sees as EU barriers—like strict environmental rules and digital platform regulations.
Not Just About Trade
This meeting wasn’t only about the US trade deal. EU leaders are also trying to convince Slovakia and Hungary to back the 18th package of sanctions against Russia. Both countries are worried about losing access to Russian gas, which the EU plans to phase out by 2027. Slovakia’s PM Robert Fico wants a delay until their gas concerns are addressed.
Still, EU diplomats are hopeful. If gas promises are made, those countries may agree to the new sanctions—and possibly support a united EU trade strategy with the U.S.
The Bottom Line
The EU is staring down a tight deadline. Some leaders want to take the hit and settle now. Others say the bloc shouldn’t give in so easily.
Whatever path they choose, the US trade deal will shape the next chapter in EU-U.S. relations.
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