The EU has not lost hope with Trump and is working to close a trade deal.

BrusselsBrussels has been assuring for days that the European Union and the United States were about to close a trade agreement"Our feeling is that we were very close to an agreement," Trade Commissioner Maroš Šefčovič confirmed this Monday. However, Donald Trump threatened the European bloc again this weekend and, as Šefčovič admitted, this move puts the negotiations "in a completely different dynamic." "I want to make clear my disappointment with the [US] measure," insisted the EU's negotiator at the start of the EU Trade Council meeting this Monday. Šefčovič said that 30 percent is a level that is "absolutely prohibitive" for any trade relationship.

However, both Brussels and the member states agree that the "priority" remains reaching an understanding with Trump and avoiding a trade war. This is the reason why Brussels has postponed the retaliatory tariffs to the White House until August 1. In fact, Šefčovič insisted that his intention is to work until the last day to achieve a trade pact and stated that he already plans to speak with US authorities this afternoon. In fact, this Monday, Trump said he was open to negotiations: "We are always open to talk. We are open to talk, even with Europe," the president assured in a meeting at the White House with NATO Secretary General Mark Rutte.

The vast majority of European partners share the position of the European Commission and close ranks with the executive. Danish Foreign Minister Lars Løkke Rasmussen said he "trusts that the member states will stand together" and argued that the EU's attitude is in no way a matter of "weakness," but rather a "clear signal" of wanting to avoid a trade war. "We must stand together," said the representative of Denmark, which holds the rotating presidency of the EU Council.

However, there is a certain division between countries. On the one hand, the most export-oriented economies in the United States, such as Germany and Italy, are urging a deal with the Trump administration, even if it is not the one desired by the EU. This way, they want to prevent, for example, the US from continuing to apply the 25% tariffs it is currently charging on imported European cars. In fact, Berlin is willing to accept 10% customs duties in the United States in exchange for saving some sectors, such as the automotive and pharmaceutical sectors.

On the other hand, some member states less exposed to the US economy, such as France, are opting for a tougher stance against Trump and are urging him not to give in or accept an unbalanced agreement. French Trade Minister Laurent Saint-Martin called on Monday for the EU to present its response capabilities "clearly" and to outline "the countermeasures and retaliations" it has at its disposal.

In turn, the Spanish Minister of Economy, Carlos Cuerpo, has expressed his "support" for the European Commission and asserted that, despite Trump's new threats, he sees "positive progress" in the negotiations. However, he urged "not to be naive" and to prepare to respond to a new tariff offensive by Trump.

In this regard, the European Trade Commissioner and the majority of EU trade and foreign ministers have also reminded Trump of the response measures they have in store. One of them is an increase in tariffs in the US from 10% to 25%, which would affect transactions totaling €21 billion, according to estimates by the European Commission itself. The list includes around 1,700 products, such as all types of food, mattresses, clothing, and diamonds, as well as iconic brands such as Levi's and Harley-Davidson.

This countermeasure was scheduled to take effect this Tuesday, but Brussels has postponed it until August 1, when Trump says he will apply the new tariffs to the EU. This way, the European Commission aims to have more room to reach a trade pact with the White House.

Brussels also has the so-called "anti-coercion instrument," which aims to achieve a deterrent effect on the White House's intentionThis legislation aims to provide the EU with a legal framework to facilitate, urgently and quickly, the possibility of increasing customs duties, restricting imports or exports, excluding certain countries from participating in public tenders, and, among other things, suspending international intellectual property obligations, which would particularly affect large technology companies. In any case, Brussels and the Member States rule out activating this measure to avoid aggravating the tariff conflict and insist on their desire to reach an agreement with Trump.