EU in suspended state as Washington waits waiting for a trade agreement

The European Union (EU) is stuck in the suspended state because uncertainty remains when a trade agreement with the US can be reached.

The goal was to agree on the frame until July 9, when the US President Donald Trump was initially appointed. The EU still still worked on this temporary scale at the beginning of the week.

But the term has passed – without the trading partners to come to the agreement.

However, this week, the basis may still be created, Trump suggested on Tuesday.

“We are probably two weekends from sending them a letter. We talk to them,” he said, believing that the sent letter would mean a deal or a tariff decision. Trump On Monday, social networks said letters were sent to 14 countries Teaching new tariff rates and the EU still does not receive such communication.

But Trump also noted that the EU and the United States’ connection has improved.

“Until recently, they treated us very badly. Now they treat us very beautifully. It’s like another world,” he said at a meeting in the White House on Wednesday. “They were one of the most difficult to fight.”

This noted the shift in tone from Trump having frequently The question arose with trade ties between Washington and Brussels, believing it was unfair and unbalanced.

As depending on European CouncilTrade between the EU and the US was estimated at approximately 1.68 trillion euros ($ 1.97 trillion) with the account of both goods and services in 2024. The EU has recorded excess when it comes to trade in goods, but recorded a deficit in trade in services, leaving a total trade surplus of about 50 billion euros last year.

Meanwhile, US Secretary of Trade Howard Lutnik also suggested that there was a deal on the table.

“The European Union, on their merit, has now made significant, true proposals, that is, we are going to destroy our barriers, we are going to open our markets by American farmers, ranchers, fishermen, really open their markets and let the Americans finally, the American entrepreneurial spirit will finally be able to sell to Europe,” he said, he said government On Tuesday, CNBC’s “Power Lunch”.

“The president got these transactions on the table and he thinks about how to play them,” he added.

The EU is expected to agree with the basic tariff by 10% with the hope that it may agree on some exceptions or affect other transactions in certain sectors. This would be sharply below 50% of the tariff that previously called on Trump.

The President of the European Commission Ursula von der Leyen was cautious in his response to Trump’s comments, which states on Wednesday: “We adhere to our principles, we protect our interests, continue to work in good faith and prepare for all the scenarios,” she said in the European Parliament.

Speaking in front of “Squawk Box Europe” CNBC, Wednesday, Peter Chase, a senior German Marshal officer, said the question was not 10% for Europe, but for the US, ultimately.

“You know, this is an importer who pays the tariff, not an exporter,” he said. “If Europeans have a tariff of 10%and Korea has 25%, then the American business pays more than the same product from Korea than pay for it from Europe,” Chase explained.

Thus, European companies will “deal with this, but the American client who will pay for it,” he said.