Trump hails ‘positive’ step in U.S.-EU trade talks as markets await deal

U.S. President Donald Trump has announced that he is closely monitoring the progress of trade talks with the European Union, following his decision to postpone a 50% tariff on EU goods until July 9. In a post on the Truth Social platform, Trump expressed optimism about the recent developments, stating that the EU has reached out to schedule meetings quickly. He emphasized the importance of opening up European nations for trade with the United States, echoing similar demands he has made to China.

Trump also noted that the EU has been dragging its feet in negotiations with the White House, but he remains hopeful for a breakthrough in the discussions. The threat of increased tariffs on EU goods had initially caused concern in the markets, but sentiments turned positive as hopes for progress in trade talks emerged.

European Commission President Ursula von der Leyen and European Trade Commissioner Maros Sefcovic have both expressed willingness to advance talks swiftly and decisively. This positive attitude has contributed to a slight increase in the Stoxx 600 index and a positive opening for U.S. markets.

The EU was hit with a 20% tariff in April as part of Trump’s reciprocal tariff strategy, which was later reduced to 10% for most trading partners. The EU has made it clear that they are committed to reaching a deal with the U.S., but not at any cost. The European Commission has even initiated a consultation on potential tariff countermeasures against U.S. imports worth 95 billion euros if a deal is not reached.

In contrast, the U.S. recently unveiled a trade deal outline with the U.K., maintaining a 10% baseline tariff on U.K. imports. Trump has shown a more favorable attitude towards the U.K. due to its balanced trade relationship with the U.S., while criticizing the EU for what he perceives as unfair trade practices.

Overall, the ongoing trade negotiations between the U.S. and the EU are crucial for both parties, and the recent positive developments offer hope for a mutually beneficial agreement. It remains to be seen how the talks will progress in the coming days and whether a deal can be reached to benefit both sides economically.