EU diplomats have said there is still no trade deal with the US, and have given a downbeat assessment of how US President Trump might respond when the deadline to reach agreement expires next Wednesday, via RTE's Connelly

• Assessment comes following a long briefing of EU ambassadors by the EU’s trade commissioner Sefcovic in Brussels this afternoon.


• According to an EU diplomat, the Commission believes the US will address various trading partners according to three separate categories early next week.


• Under the first scenario the current reciprocal tariff pause would remain for those trading partners where agreement in principle has been reached, with possible further tariff relief later.


• A second scenario would see previous country-specific tariffs reinstated where there are ongoing negotiations, but no agreement in principle yet. In that scenario tariffs on EU goods would revert to the 20pc rate first announced on April 2, during President Trump’s so-called “Liberation Day” announcement and would remain until a final deal is done.


• A third scenario would be a return to the previous 20pc tariff rate which would remain until further notice.


• Sources have been pessimistic about a positive outcome next week, although diplomats say contacts will continue over the weekend.


• Diplomats have said it is unclear if the US side has agreed to any sectoral carve outs, such as pharmaceuticals, semiconductors or aviation - a key EU demand - as the minimum the EU has sought to rebalance the lingering 10% tariff.

04 Jul 2025 - 16:17- ForexImportant- Source: X