The EU’s trade chief will fly to the US tomorrow for last-ditch talks with senior American officials, just days before Donald Trump’s 50% blanket levy on European goods is due to enter into force.

Maroš Šefčovič told reporters on Monday that he expects to meet with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick in Washington on Wednesday and Thursday.

The US president has imposed sweeping tariffs since his return to the White House in January, including a 50% duty on all US imports of steel and aluminium, and a 25% levy on cars. Trump has also pledged to hike the current 10% baseline duty on most EU exports to 50% on 9 July, when sweeping “reciprocal tariffs” on many other US trading partners are also set to kick in.

“Of course, we’ll do our utmost with my partners in the US to advance these negotiations as much as possible” before the 9 July deadline, Šefčovič said, adding that he had recently held “very intensive and sometimes very intense discussions” with both Greer and Lutnick.

Šefčovič’s comments come after European Commission officials briefed EU ambassadors in Brussels on Monday about the current state of play in EU-US trade talks.

Best-case scenario
The Commission, which oversees the bloc’s trade policy, told EU envoys that a “best-case” scenario would be a so-called “framework agreement” similar to the one agreed in May between the US and the UK, according to EU diplomats briefed on the discussion.

The deal, which would be far shorter and vaguer than a traditional free trade agreement, would likely include a general statement of principles and commitments to clarify ongoing trade disputes, as well as pledges to remove specific tariffs on EU exports, the diplomats said.

If no deal is reached – or no extension to the 9 July deadline is granted – the EU would likely impose retaliatory tariffs on €21 billion worth of US goods on 14 July, diplomats added. The bloc is also preparing a separate list of targeted goods, which could cover US exports valued at €95 billion.

The outcome of Šefčovič’s visit will be discussed by EU ambassadors in Brussels on Friday, and possibly also by the EU Council’s Trade Policy Committee on Thursday, diplomats said.

Conflicting signals
Šefčovič’s comments also come amid conflicting signals from the EU about whether the bloc would consider revising its regulations – especially those concerning digital companies and services – in order to strike a deal with Washington.

In a sign that the bloc may be caving to US pressure to revise its Digital Markets Act (DMA) – long criticised by Trump and major US tech firms – Commission President Ursula von der Leyen said last week that EU officials are discussing “non-tariff barriers like standards and norms” with their US counterparts.

However, the following day, Matthias Jørgensen, a senior EU official involved in the negotiations, told members of the European Parliament’s Trade Committee that “changes to existing EU legislation” constitute “red lines” for Brussels.

Further muddying the waters, US Treasury Secretary Scott Bessent – who previously said it is “highly likely” that the 9 July deadline could be extended – suggested on Monday that the US is preparing to reimpose the sweeping “reciprocal” levies introduced on 2 April, which upended global trade and roiled financial markets before being suspended for 90 days on 9 April.

“We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the 2 April levels,” he told Bloomberg TV. “I hope that won’t have to happen.”

(aw)