European Union leaders gathered in Brussels to evaluate new U.S. trade proposals amid rising concerns over potential tariff hikes. European Commission President Ursula von der Leyen stated that “all options remain on the table,” signaling that a deal may not be reached before the July 9 deadline set by U.S. President Donald Trump. Without an agreement, EU exporters of cars, pharmaceuticals, and other goods could face tariffs as high as 50%.
The EU remains divided on how to respond. German Chancellor Friedrich Merz pushed for a “quick and simple” deal, while French President Emmanuel Macron insisted on balanced terms and hinted at retaliatory measures if unfair tariffs persist. French officials have advocated for targeting U.S. services, including digital giants like Google, Meta, Apple, and Microsoft, via a potential digital advertising tax.
The U.S. recently submitted a two-page principle-based proposal, avoiding specifics on industrial sectors. Current U.S. tariffs already include 50% on steel and aluminum, 25% on autos and parts, and 10% on most other EU goods. The EU has approved but not implemented tariffs on €21 billion of U.S. goods and is considering additional duties on up to €95 billion in imports.
Alongside trade, leaders discussed a new trade cooperation model with Asia-Pacific nations to counter the ineffective World Trade Organization. They also addressed Ukraine’s EU membership prospects and additional sanctions on Russia, with pushback from Hungary and Slovakia over energy concerns.
Ukrainian President Volodymyr Zelenskiy urged the EU to send a strong signal of support, warning that delays could undermine trust. Slovakia’s Prime Minister Robert Fico threatened to block further sanctions unless his country’s gas concerns are resolved. The summit highlighted growing geopolitical tensions and the urgent need for EU unity ahead of critical deadlines.