EU locked in trade talks as Trump tariff deadline looms

The European Union and the United States have just 48 hours to resolve a trade dispute or face Donald Trump unleashing billions of dollars worth of transatlantic tariffs.

- ARCHIE MITCHELL POLITICAL CORRESPONDENT

A 90-day pause on the imposition of the US president’s “Liberation Day” import taxes expires on Wednesday, and leaders across Europe are bracing for the threat of 50 per cent tariffs on goods sold in the US.

A split has emerged in the bloc, with some urging European trade commissioner Maros Sefcovic to pursue a UK-style deal to resolve the trade dispute, sparing the EU from the worst of Mr Trump’s wrath.

Other EU leaders have cautioned against the thin UK-US deal agreed by Sir Keir Starmer, and believe Brussels should use its clout to secure a more comprehensive agreement.

Mr Trump imposed a 20 per cent import tax on all EU-made products in early April as part of a set of tariffs targeting countries with which the US has a trade imbalance. Hours after the nation-specific duties took effect, he put them on hold until 9 July at a standard rate of 10 per cent to quiet financial markets and allow time for negotiations.