Merz Pushes for Quick Deal as EU Nears Tariff Compromise with US

German Chancellor Friedrich Merz’s calls for a quick deal are echoing through Brussels as the EU reportedly nears a tariff compromise with the US. The bloc is willing to accept 10% tariffs as part of a “framework” agreement to avert President Donald Trump’s threatened 50% tariffs on all EU exports, with a crucial deadline next Wednesday. This compromise, however, hinges on securing an extension for broader negotiations and potential relief from the 25% car tariff, a significant concern for German manufacturers.
US Treasury Secretary Scott Bessent offered a positive outlook following his meeting with EU Trade Chief Maroš Šefčovič, remarking on the potential for a deal and the US’s broader aim for increased trade agreements. Further discussions are scheduled throughout Thursday afternoon with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, indicating the critical nature of these ongoing diplomatic efforts. Updates for EU ambassadors are anticipated on Friday.
President Donald Trump’s strict deadline of July 9th for imposing 50% tariffs on all EU goods has intensified the negotiations. This would be a dramatic increase from current tariffs, which already apply at 10% for most EU products and 25% for cars and parts. Merz has consistently emphasized that a swift, simple “agreement in principle” is needed to alleviate the burden of current high tariffs on European businesses.
A key EU demand for any extension is a “standstill clause,” guaranteeing no new tariffs. While optimism exists for a deal by Friday, potentially providing Trump with a timely Independence Day announcement, the challenges are notable. Previous talks reportedly included a “massive tome” of US grievances, and the latest US proposal is said to lack details on American concessions, particularly on sensitive “red line” issues for the EU, such as strategic sectors, energy, and non-trade barriers.