BRUSSELS, 26 May 2025 — European Commission President Ursula von der Leyen has pledged to accelerate trade negotiations with the United States following what she described as a “good call” with former U.S. President Donald Trump, amid escalating tensions over looming tariffs on EU exports.
“The EU and US share the world’s most consequential and close trade relationship,” von der Leyen posted on X (formerly Twitter) on Sunday. “Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”
The announcement comes just days after Trump reignited transatlantic trade tensions by threatening to impose sweeping 50% tariffs on all EU imports starting June 1, citing frustration over stalled negotiations. “Talks are going nowhere,” Trump said Friday, adding that he was “not looking for a deal,” and accused the EU of having been created to “take advantage” of the United States.
Trade discussions between Brussels and Washington had previously resulted in a temporary freeze on mutual tariff actions, set to expire in July. Both sides have been attempting to avert a full-blown trade war, with negotiators racing to find common ground before the truce ends.
Calls for Calm and Constructive Dialogue
German Finance Minister and Vice Chancellor Lars Klingbeil echoed calls for restraint on Sunday, urging Washington to engage in “serious negotiations.” Speaking to Bild newspaper, Klingbeil said, “We don’t need any further provocations. The US tariffs endanger the American economy just as much as they do the German and broader European economy.”
Trump’s administration had previously imposed three rounds of tariffs on the EU — 25% on steel and aluminium, levies on automobiles, and a 20% “reciprocal” tariff on all EU imports, though most of these measures were suspended pending ongoing talks. A baseline 10% tariff remains in place.
EU Warns of Retaliation
In response to Trump’s latest remarks, EU Trade Commissioner Maroš Šefčovič reaffirmed the bloc’s commitment to dialogue but warned that negotiations must be based on “mutual respect, not threats.”
Brussels has already outlined a potential retaliatory package targeting nearly €100 billion (US$113 billion) worth of American goods if a trade deal cannot be reached.
According to U.S. government data, the country registered a goods trade deficit of US$236 billion with the European Union in 2024. However, when factoring in services — where U.S. firms maintain a strong lead — the European Commission estimates the overall U.S. trade deficit with the EU narrows to around €50 billion (US$57 billion).
With just over a month remaining before the tariff freeze expires, all eyes are now on whether renewed diplomatic efforts can prevent one of the world’s largest trade relationships from turning hostile.
