EU working non-stop for trade agreement with US: EU Commission chief

ISTANBUL

European Commission President Ursula von der Leyen said Thursday that the EU is working non-stop to reach an initial agreement with the US and to keep tariffs as low as possible.

Speaking at the French-Italian Economic Forum in Rome, von der Leyen said another goal of the talks is to provide the stability that businesses need.

"Because we believe tariffs are a lose-lose. A tax on industry. A tax on people," she said.

Von der Leyen also stressed that the EU is not "naive" and recognizes that its relationship with the US may not return to what it once was.

"That is why we are also working hard to strengthen and diversify our trading relationships with others. Eighty percent of our trade is with partners other than the US," she noted.

Still, von der Leyen emphasized that the US remains the EU’s most important trade and investment partner, accounting for 20% of its exports and about 3% of the EU’s gross domestic product.

Highlighting that businesses across Europe want certainty and predictability in transatlantic trade, she noted that millions of jobs depend on these economic ties.

"This was a point I underlined in my recent phone call with President Trump. And, it is central to our negotiations," von der Leyen added.

She also pointed out that the EU already has the world’s largest network of free trade agreements, covering 76 countries, and that in a world battered by global volatility, more nations are turning to Europe.

Trade talks between the US and EU remain ongoing as Brussels seeks a better tariff agreement.

In April, the US imposed "reciprocal" tariffs on most countries, later suspending them for 90 days to negotiate deals. The EU was subjected to a 20% rate.

Last month, President Donald Trump threatened to impose a 50% tariff on EU goods effective June 1, saying negotiations were “going nowhere.”

However, after speaking with von der Leyen, Trump announced that the new tariff would be postponed to July 9.

This week, the US president postponed the tariff deadline again, to Aug. 1, and sent letters to several countries informing them of the tariff rates they will face if no agreement is reached.

Trump said Tuesday that the EU has changed its tone in talks: "They treated us very badly until recently. Now they're treating us very nicely. It's like a different world."

"We're probably two days off from sending them a letter. We are talking to them. I just want you to (know) a letter means a (tariff) deal," he said.