Wed, 09 Jul 2025

Wed, 09 Jul 2025 EU hopes to agree US tariff deal 'in coming days'

The EU remains hopeful it will strike a deal to avoid steep levies Trump has threatened on its exports to the US.
The European Union (EU) has expressed hope that a US tariff deal will be reached "in the coming days" to avoid import taxes threatened by US President Donald Trump on EU goods. The talks, which were extended until August 1, are considered crucial for the two powers' relations. Italy's Economy Minister described the negotiations as "very complicated", while the EU has said it is prepared to retaliate if tariffs are imposed. Despite some uncertainty, analysts at Pantheon Macroeconomics noted that moving forward with tariffs would carry significant risks for the US economy due to its reliance on trade with Europe. The White House and Commerce Secretary Howard Lutnick have expressed optimism about a potential deal, citing "significant" offers from the EU that would benefit American farmers. Markets in Europe rose slightly on Wednesday, while markets in the UK and US remained steady. Analysts describe investors' reaction as 'TACO' (Trump always chickens out) trading, indicating skepticism over Trump's credibility in negotiating tactics.
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