The European Commission is closely studying the newly announced trade agreement between the United States and the United Kingdom, examining its potential impact on the European Union and broader international commerce, EU Economic Commissioner Valdis Dombrovskis said Monday.
The US-UK accord, unveiled last Thursday, will see mutual tariff reductions on select goods, including cuts to American duties on steel and automobiles and improved access to agricultural markets for both sides.
“We are currently closely analysing the content to assess its potential implications, particularly regarding any effects on EU interests or the wider global trade landscape,” Dombrovskis told reporters.
Brussels is in the midst of its own high-stakes discussions with Washington aimed at replacing sweeping U.S. tariffs imposed under former President Donald Trump. The U.S. currently levies a 25% duty on EU steel, aluminum, and vehicles, with a 10% tariff still in place for most other European exports.
The White House has given negotiators until July 8 to strike a deal. Dombrovskis confirmed that efforts remain focused on reaching a resolution within this 90-day window.
“Talks between the EU and the U.S. are active, and we intend to fully use this period to pursue a negotiated outcome, which has always been our preferred path,” he said.
However, Dombrovskis acknowledged that the bloc is preparing for all scenarios. Should the talks collapse, the European Commission has proposed retaliatory duties on up to €95 billion ($107 billion) worth of American imports.
The EU’s proposed countermeasures, announced last Thursday, reflect mounting frustration over tariffs that have weighed on European manufacturers for years. The Commission’s response underscores the urgency of securing a deal, especially as other major players like the UK gain more favorable trade terms with Washington.
Observers say the EU’s response to the US-UK pact could shape the tone of the remaining negotiations and influence future trade alignments.
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