EU in limbo amid U.S. delay

⏰ Missed deadlines & lingering uncertainty

• The EU aimed to finalize a framework deal by July 9, marking the end of a temporary pause in U.S. “reciprocal” tariffs—but that date passed with no agreement announced, leaving the bloc in limbo.
• Despite ongoing talks, EU negotiators remain in the dark about when—or if—President Trump will give the go‑ahead.

 

📄 Framework deal details

• The proposed framework is modest: a 10% tariff baseline on most EU exports to the U.S., with sectoral carve-outs—e.g., autos and steel—possibly enjoying exemptions.
• The EU insists on including a “stand‑still clause” to prevent the U.S. from imposing new tariffs after the agreement is signed.

 

⚖️Internal splits within the EU

• Export-heavy countries—Germany, Italy, Ireland—push for quick resolution to protect their industries.
• Others, notably France, caution that this deal may lock in high tariffs without sufficient reciprocal concessions, potentially tying Europe’s hands.

 

🌍 EU pivot & backup options

• Fears of overreliance on the U.S. have accelerated European interest in alternative trade strategies, including deeper ties with Asia via the CPTPP and forming trade blocs with partners like Mercosur.