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EU-US Trade Talks Advance but No Final Deal as May Deadline Looms

EU-US Trade Talks Advance but No Final Deal as May Deadline Looms
Business · 2026
Photo · Beatrice Romano for European Pulse
By Beatrice Romano Business & Markets Editor May 7, 2026 3 min read

Negotiators from the European Parliament and the Council of the EU met late into Wednesday night in Brussels, aiming to finalise the bloc's side of the EU-US trade agreement. Despite the extended session, no final deal was reached, though a diplomatic source told Euronews on condition of anonymity that the legislative file is expected to be approved on 19 May.

The talks come as US President Donald Trump’s administration has grown increasingly impatient. Ambassador Andrew Puzder, Washington’s envoy to Brussels, told Bloomberg that the deal was already struck last year. “Our representatives put it to paper in August. We cut the tariffs, retroactive to August 1 on automobiles. You've done nothing for nine months,” he said.

Progress on Safeguards, but Gaps Remain

German MEP Bernd Lange (S&D), chair of the European Parliament’s influential trade committee, represented the Parliament in the discussions. He noted that “good progress” was made on the safeguard mechanism and the review and evaluation of the main regulation, but “there is still some way to go.” Lange confirmed that talks will continue in the coming weeks.

Representing the member states, Cypriot Minister of Commerce Michael Damianos, whose country holds the rotating EU Council presidency, stressed a commitment to move swiftly on implementing the EU-US joint statement. However, he emphasised that the talks remain focused on achieving a “successful and balanced outcome in a timely manner” for European businesses.

As Peggy Corlin and Vincenzo Genovese report, the negotiations had been forecast from the outset to have slim prospects. Negotiators faced tight deadlines, strict demands, and repeated tariff threats—most notably on Friday, when Trump announced 25% import levies on European cars, a move that breaches the Turnberry agreement’s 15% tariff cap on European exports.

Internal Rifts and Trump’s Threats

Prior to Wednesday’s session, one European diplomat argued to Euronews that the conditions proposed by MEPs went “too far.” Socialist MEP Brando Benifei countered that Trump’s continued threats compelled the Parliament to insist on “solid guarantees.” The internal rift reflects broader tensions within the EU over how to handle a US administration that views trade as a weapon, as former EU foreign policy chief Catherine Ashton recently argued. For more on these dynamics, see Catherine Ashton: Trump Views Trade as a Weapon, EU Must Adapt.

The stakes are high: if the EU fails to ratify the deal by the 19 May deadline, Trump has threatened further tariffs, including the 25% levy on European cars. The EU has already prepared for a potential trade showdown, as detailed in EU Prepares for Trade Showdown as Trump Threatens 25% Tariffs on European Cars. Many observers now wonder how Trump will respond to the delay.

The outcome of these talks will have significant implications for European exporters, particularly in the automotive and manufacturing sectors. The EU’s trade chief has urged the US to restore the 15% tariff cap, as tensions rise. For a deeper look at the broader trade landscape, see EU Trade Debate: Can Europe Avoid a Trade War with China?.

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