EU fears major trade deal with US could collapse - Bloomberg
Friedrich Merz and Donald Trump (Photo: Getty Images)
Disagreements between US President Donald Trump and German Chancellor Friedrich Merz are complicating the EU's efforts to complete a trade deal with the US before Washington imposes new tariffs, according to Bloomberg.
According to a source, on Thursday, May 7, the US president was unwilling to delay the promised 25% tariff on European cars and trucks. The reason is that he remains dissatisfied with the German chancellor over his criticism of the war in Iran.
This, in turn, is causing concern among senior European officials, who fear that the failure to conclude a trade deal by the new deadline (July 4) could trigger a downward spiral, the source said.
And although officials express confidence that they will be able to complete their work by that time, the nuance is that this deadline leaves almost two months for Trump's personal grievances to resurface again.
Moreover, Europe has its own internal problems to resolve regarding the actual trade agreement, which the US has partially implemented, while the EU is working on its legislative process.
The European Parliament and EU member capitals are still arguing over the text of the agreement, as EU lawmakers are trying to amend the deal that EC chief Ursula von der Leyen and US President Donald Trump concluded in July 2025.
In particular, the European Parliament wants to add an expiration date and a clause stipulating that the agreement will not enter into force until the US has fully fulfilled all its obligations.
What preceded this
Нesterday, US President Donald Trump said he had a wonderful conversation with European Commission President Ursula von der Leyen. Following the conversation, Trump set a new deadline for the EU to fulfill the trade agreement — giving time until July 4.
If the European Union ignores US demands, Trump threatened to impose much higher tariffs on European goods, including cars.
Trump imposed increased tariffs on imported medicines to force companies to move their factories to the US. The tariffs will take effect in a few months.
Meanwhile, the other day, Lithuanian Finance Minister Kristupas Vaitiekūnas called on the EU to continue negotiations with the US while preparing countermeasures after Trump renewed tariff threats.
