June 12, 2025 — Trade negotiations between the U.S. and EU are entering a protracted phase, with officials and economists adjusting expectations ahead of next week’s G7 summit.
Lead:
Following a volatile exchange with China, the Biden‑era trade agenda is shifting to Europe. Analysts warn the coming months will feature methodical, measured discussions rather than swift breakthroughs.
Details:
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Major sticking points include agriculture access, aircraft rivalry (Airbus vs. Boeing), pharmaceuticals pricing, auto exports, and the EU’s digital services taxes
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Though markets have remained steady and the euro has firmed, investors are bracing for potential volatility given the ongoing tariff dilemmas
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Germany’s leader praised a recent U.S.–China rare earth export agreement and hopes EU–U.S. trade talks will yield similar pragmatic outcomes
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A temporary delay in the U.S.’s proposed 50 % EU goods tariff—pushed from June 1 to July 9 after talks between Biden and von der Leyen—offers negotiators a slim window to strike a deal
Outlook:
Negotiations are expected to continue in a cautious, incremental manner. Key progress is unlikely before the G7 in Canada, where EU and U.S. leaders will test alignment on trade and sanctions, particularly regarding Russia
