The Member States of the European Union (EU) were informed of the status of trade negotiations on Friday (04.07.2025), after conversations with USA In Washington this week, learning that a technical deal in principle is near, according to Bloomberg sources.
In addition, increased pressures for an agreement with the US are exerting some EU automakers and capitals, which would allow for duties in exchange for increased investment in the US, the same sources said.
The EU has a deadline until July 9 to enter into a trade agreement with Donald Trump, before duties on almost all exports of the block to the US are raised to 50%.
The US president has imposed duties on almost all his commercial partners, saying he wants to restore domestic production, he needs to pay for the expansion of tax cuts and stop other countries from exploiting the US.
Any agreement ultimately depends on Trump and the expected scenarios for next week include An agreement on the principle that does not allow for new duties to impose, an agreement providing for the entry into force of new duties until a more formal agreement is reached or the announcement of unilateral duties by the USaccording to sources.
The Commission has not approved any so -called cars compensation mechanism. EU officials are concerned that such a move will divert production and investment away from Europe.
Sources have warned that discussions remain difficult and Member States have different views on the level of imbalance they are willing to accept in any agreement.
Some capitals said they want a quick deal and do not want to escalate, while others want to negotiate from a position of power by responding to Trump’s contributions with countermeasures.
The EU is willing to accept some asymmetry in a deal and a 10% rate for many exports, as Bloomberg previously published. But it continues to want one of the prior commitment to lower rates than them in key areas, such as air transport.