【By Guan察者网, Zhang Jingjuan】 With less than a week until the tariff deadline set by the Trump administration, the US-EU tariff impasse remains unresolved.

The American consumer news and business channel (CNBC) cited three sources on the 2nd, saying that it would be a blessing for Europe to reach a minimal agreement (bare-bones deal) by the key deadline of July 9th.

According to the report, European officials said their current biggest hope is to reach a "political" agreement. Specific details of the trade arrangements will be deferred for further determination.

"The proposal put forward by the United States last week aims to achieve a principle agreement," said an EU official who did not want to be named to CNBC. This principle agreement will then "be turned into a complete trade agreement through negotiations in subsequent stages."

The report said that since Trump returned to the White House, the US and the EU, once close allies, have had differences in trade and support for Ukraine, leading to a strained relationship.

In early April, tensions escalated when the White House announced so-called "reciprocal tariffs" on countries and regions around the world, including a 20% tariff on imports from the EU. In May, Trump threatened to impose a 50% tariff on goods imported from the EU starting June 1st, but quickly "retracted" the threat, agreeing to delay the tariff implementation date to July 9th, giving both sides more time for negotiations.

Last week, the United States submitted a new proposal to the EU negotiation team. European negotiators will hold face-to-face talks with the US later this week, striving to reach an agreement in the coming days. Data from the European Commission shows that the total value of goods traded between the EU and the US reached 851 billion euros (about 1 trillion dollars) in 2023.

EU officials expect updates on the negotiations this Friday (4th), but the situation still has uncertainties. On June 30, ambassadors from European countries discussed the progress of the trade negotiations. Lithuanian Finance Minister Rimantas Šadžius told CNBC on July 2nd that he was "cautiously optimistic" about a trade compromise across the Atlantic.

On April 2nd local time, Trump signed an executive order at the White House announcing the so-called "reciprocal tariffs". White House video screenshot

Despite this, sources said that although all parties are making efforts to seek trade compromises, the EU is preparing for all possibilities, including resuming retaliatory tariffs.

EU officials said: "In the coming days and weeks, from reaching a framework agreement to imposing higher tariffs on more US industries, all outcomes are possible."

European Commission President von der Leyen also expressed the same view last Friday (June 27th).

"We are prepared to reach an agreement. At the same time, we are also preparing for the possibility that no satisfactory agreement can be reached," she said at a press conference.

The report said another EU official told CNBC that Brussels realizes it is almost impossible to return to the trade relations the EU and the US enjoyed before the announcement of the so-called "reciprocal tariffs" on April 2nd.

A third EU official, who also chose to remain anonymous, pointed out that there is a risk that an "unbalanced" agreement may be reached, under which the US will still impose additional tariffs on certain EU goods.

However, all three sources confirmed that the EU hopes the US will lower tariff rates in key areas such as automobiles, semiconductors, and pharmaceuticals.

Bloomberg previously quoted sources saying that EU officials listed four possible scenarios that could occur before the July 9th deadline: 1. An acceptable asymmetric agreement is reached. 2. The US proposes an unbalanced agreement that the EU cannot accept. 3. The deadline is extended to continue negotiations. 4. Trump withdraws from the negotiations and raises tariffs. According to insiders,

If the fourth scenario occurs, the EU is likely to take comprehensive retaliatory measures.

The EU has approved tariffs of up to 50% on $21 billion worth of American goods to quickly respond to Trump's metal tariffs. In addition, the EU has prepared an additional list of tariffs on $95 billion worth of American products to respond to Trump's "reciprocal tariffs" and car tariffs.

As the tariff suspension period approaches, so far, among the US's allies, only the UK has reached a limited trade agreement with the US.

The White House previously stated that the negotiation deadline set by Trump "is not important," and "perhaps these deadlines can be extended, but that will be decided by the president." However, Trump said on Air Force One on July 1st that he had not considered extending the deadlines for countries negotiating trade agreements with the US.

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