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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: The European Union is pushing to reach a trade agreement in principle with the United States by July 9, despite Washington’s unexpected decision to postpone its tariff deadline to August 1
• Brussels remains committed to finalising a deal this week that would lock in a 10% baseline tariff and avoid steep U.S. duties threatened for countries without agreements
• However, EU officials criticised what they called the Trump administration’s repeated “U-turns” in the negotiations, creating confusion and raising strategic questions in European capitals
🔭 The context: Talks intensified earlier this year after Washington announced a return to universal tariffs absent bilateral deals, a move that risks escalating transatlantic trade tensions
• Some EU member states, such as Germany and Italy, have advocated for a swift compromise to protect exports and secure lower tariffs on strategic goods
• Others, like France and Spain, have urged a tougher line, wary of excessive concessions
• The U.S. has reportedly grouped trade partners into three categories based on progress in negotiations, with varying tariff levels tied to each
🌍 Why it matters for the planet: Trade policies have significant implications for the sustainability agenda, affecting carbon-intensive sectors, renewable energy goods, and supply chains’ resilience
• Uncertainty in transatlantic trade could slow Europe’s green transition by raising costs on clean technologies, agricultural products, and critical raw materials
• A durable, predictable agreement could foster more cooperative climate-aligned trade, while a failure could deepen divisions and harm progress on joint environmental commitments
⏭️ What's next: Brussels is pressing for clarity from Washington as it awaits formal notification of the EU’s tariff category
• EU negotiators aim to finalise a framework deal before Wednesday’s Commission meeting, though internal divisions among member states may complicate consensus
• Should talks fail, the EU could activate its suspended countermeasures on U.S. goods after July 14, with a second, more severe round of retaliatory tariffs still under preparation
• President Trump’s stance in coming days will be decisive for whether both sides can avoid escalation
💬 One quote: “They’re the ones who say things, then say other things and then say new things,” — EU trade spokesperson Olof Gill, lamenting U.S. unpredictability as a “sorry saga”
📈 One stat: The EU’s first round of suspended countermeasures covers approximately €20 billion worth of U.S. imports, with further penalties under consideration if talks collapse
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