After discussing the latest proposals from the White House with EU leaders, European Commission President von der Leyen said the EU is ready for all possible scenarios in trade talks with the United States, including a breakdown in talks.
Von der Leyen said at a press conference early Friday morning that her team is still evaluating the latest US tariff proposals.
"We are ready to reach an agreement. At the same time, we are also preparing for the possibility that we cannot reach a satisfactory agreement." She said, "In short, all options are on the table."
The question that troubles leaders and the European Commission is whether to accept an asymmetric trade deal with the United States or to fight back at the risk of exacerbating the situation and angering US President Trump.
At a summit in Brussels that began on Thursday, several member states opposed retaliatory measures. According to two people familiar with the discussions, most member states said that rather than waiting for a perfect agreement, it would be better to reach an agreement with the United States as soon as possible, even if it means that many of Trump's tariff measures will remain in place.
The EU needs to reach a deal with Trump by July 9 or tariffs on almost all EU exports to the US will be raised to 50%. Trump said the EU was taking advantage of the US by setting up obvious barriers to US goods while enjoying a goods export surplus with the US.
German Chancellor Friedrich Merz said he had stressed the deadline to other leaders, urging them to reach a quick solution now to remove the threat hanging over key industries.
"We have less than two weeks," Merz said. "It is impossible to reach a complex trade deal in such a short time."
However, another official said Paris refused to accept any deal that favored the United States and pushed for a complete elimination of tariffs. French President Emmanuel Macron told reporters after the summit that reaching a deal quickly was the better option, but only if it was "balanced."
"The best tariff deal with the United States is zero for zero," Macron said, insisting that the EU must respond if the United States decides to maintain 10% tariffs. "Otherwise, we are either naive, too weak, or both," he said. "And we are neither."
The EU is in detailed discussions with the US on tariffs and non-tariff barriers, as well as key industries, strategic procurement and regulatory issues that the EU hopes to address through a simplified agenda, according to people who asked not to be named.
It was previously reported that the US is asking the EU to make concessions that EU officials consider unbalanced and unilateral. Negotiations in key areas such as steel and aluminum, automobiles, pharmaceuticals, semiconductors and civil aircraft are particularly difficult.
Officials believe that the best case scenario is still to reach an agreement on principles so that negotiations can continue after the July deadline.
