EU Faces US Tariff Pressure as G7 Trade Talks Falter
In June 2025, US-EU trade negotiations stalled at the G7 summit, with the EU considering a 10% baseline tariff to avoid harsher duties on key exports. The US also signed a trade deal with the UK, signaling shifting trade priorities.
INTERNATIONAL TRADEBANKING
6/18/20252 min read
On June 17, 2025, trade talks between the US and the European Union (EU) hit a roadblock during the G7 summit, as reported by Yahoo Finance. The EU is grappling with the threat of US tariffs, with senior Brussels negotiators contemplating accepting a 10% tariff on all EU exports to the US to prevent higher duties on critical sectors like cars, pharmaceuticals, and electronics. This follows President Trump’s April 2025 imposition of a 10% baseline tariff on all countries, with additional threats of 50% tariffs on EU imports, temporarily paused until July 9, 2025, per the Council on Foreign Relations.
Meanwhile, the US and UK finalized a trade agreement on June 16, 2025, easing tariffs on selected British goods, as confirmed by Yahoo Finance. The deal, signed by President Trump and Prime Minister Keir Starmer, marks progress in US-UK trade relations, though unresolved issues remain in key sectors. The US Court of International Trade’s May 28, 2025, ruling declared Trump’s sweeping tariffs illegal, but a federal appeals court allowed them to remain in effect pending further review, adding uncertainty to global trade.
The US also increased Section 232 tariffs on steel and aluminum from 25% to 50% on June 4, 2025, affecting all countries except the UK, according to Diaz Trade Law. This move has strained EU-US relations further, with the EU’s STOXX 600 index falling 0.3% on June 12, 2025, amid waning trade optimism, as reported by Reuters.
Conclusion:
As per the Media news, The stalled US-EU trade talks and the new US-UK deal highlight a shifting global trade landscape, with the EU under pressure to navigate US tariff threats. The temporary legal reprieve for Trump’s tariffs underscores ongoing uncertainty, urging businesses to prepare for potential trade disruptions in July 2025.
The content is based on reliable sources:
Yahoo Finance, “Trump tariffs live updates: Trump, Starmer sign US-UK trade deal at G7 summit,” June 17, 2025
Council on Foreign Relations, “Trade Calendar,” June 11, 2025
Reuters, “Stocks tick up but dollar hits 2025 low amid mixed macro signals,” June 13, 2025
Diaz Trade Law, “Breaking Trade News: Steel Tariffs to 50%,” June 6, 2025
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