U.S. and E.U. Begin Trade Negotiations

Maros Šefčovič, the European Union’s trade commissioner, held talks yesterday with U.S. Commerce Secretary Howard Lutnick, following President Trump’s announcement that he would delay imposing 50 percent tariffs on all E.U. imports to allow more time for negotiations. Šefčovič later expressed on social media that the E.U. remains “fully committed to constructive and focused efforts” to reach an agreement.

On Sunday, Trump spoke by phone with Ursula von der Leyen, president of the European Commission. Paula Pinho, a spokeswoman for the Commission, described their conversation as providing “a new impetus for the negotiations.” Both sides aim to reach a resolution before July 9, when the tariffs are scheduled to take effect.

Despite these developments, the path to easing tensions remains complicated. The U.S. and E.U. continue to hold differing priorities, and it is unclear whether any significant shifts have occurred in their demands or proposals.

Goals:

A Commission spokesman said the E.U. continues to propose eliminating tariffs on industrial goods entirely. At the same time, the E.U. is reportedly updating lists of retaliatory tariffs that could target American imports such as machinery, soybeans, and bourbon.

Challenges:

The Trump administration has insisted that European countries reform their consumption tax systems and key digital regulations—requests that European officials have firmly rejected.