EU chief, Trump had 'good exchange' by phone Sunday

A collage of President of the European Commission Ursula von der Leyen and US President Donald Trump speaking on phones. [AFP]

EU chief Ursula von der Leyen and US President Donald Trump had a "good exchange" about trade as Brussels seeks a deal to avoid steep tariffs before a July 9 deadline, the European Commission said Monday.

The pair spoke by phone on Sunday, commission spokesman Stefan De Keersmaecker told reporters.

The commission, which conducts trade policy for the 27-nation bloc, has been in negotiations with the United States for many months.

If no agreement is reached, the default US tariff on imports from the European Union is expected to double to 20 percent or even higher -- Trump having at one point threatened 50 percent.

De Keersmaecker said "work is ongoing" at all levels to strike a deal. Commission President von der Leyen was also in contact with EU leaders, he added.

Washington threw a curveball on Sunday when Treasury Secretary Scott Bessent said US tariffs will kick in on August 1 if trading partners from Taiwan to the EU do not strike a deal.

But the commission said it continued to work towards a July 9 deadline.

"Your question should be directed to the US administration," EU trade spokesman Olof Gill said when asked whether the US announcement meant there would be more time for negotiations.

"We're fully geared up to get an agreement in principle by Wednesday, and we're firing on all cylinders to that effect," Gill added.

Such an agreement would likely be thin on detail, meaning further talks would be necessary to flesh it out.

But the commission believes that whatever happens, an imbalance in trade measures between the EU and the United States will remain.

EU trade chief Maros Sefcovic has met and spoken by phone to his US counterparts several times in recent months, but calls between von der Leyen and Trump have been rare since the US president returned to the White House in January.

Trump has taken repeated swipes at the EU accusing it of taking advantage of the United States. But Brussels' rocky relationship with Washington appeared back on track when Trump called von der Leyen "fantastic" in May.