EU and US Race Against Time for Trade Deal Amid Tariff Threats

The European Union and the United States are working diligently to secure a trade agreement by July 9, following U.S. President Donald Trump's decision to postpone a looming 50% tariff on EU imports. The announcement comes as a relief to many, amid a high stakes trading relationship valued at approximately $1.8 trillion annually.

EU Trade Commissioner Maros Sefcovic announced on Monday that there is strong commitment from both sides. Sefcovic has been in regular contact with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, seeking to bridge the gap between the EU and U.S. trade policies.

Trump had initially threatened the tariff due to frustrations with EU's trade policies. However, following discussions with EU Commission President Ursula von der Leyen, there has been a renewed effort to 'fast-track' negotiations, with the EU proposing a 'zero for zero' deal excluding automobiles. The international trading community watches closely as this treaty could redefine EU-U.S. economic dimensions.

(With inputs from agencies.)