EU and South Korea Scramble to Seal Trade Pacts Before US Deadline Hits

The European Union and South Korea are working to reach trade agreements with the United States before an August 1 deadline, after President Donald Trump threatened to impose 30% tariffs on imports from the EU and Mexico, Reuters reported.

The move follows Trump’s escalating trade war strategy, which has already targeted major economies such as Japan and South Korea. White House economic adviser Kevin Hassett said existing proposals have not met Trump’s expectations, warning that the tariffs “are real” if no better offers are made.

European Trade Commissioner Maros Sefcovic said a 30% duty could devastate transatlantic trade, but noted that both sides are still working toward a resolution.

“We prioritize a negotiated solution by the new deadline,” he said, adding that the EU will not walk away without trying.

German Chancellor Friedrich Merz warned the tariff would severely impact Germany’s export-driven economy. Meanwhile, Italy’s Foreign Minister Antonio Tajani revealed the EU has already prepared a list of retaliatory tariffs worth €21 billion if talks collapse.

Also Read: Trump Announces New Tariffs, Sends Letters To Japan and South Korea | Republic World

Despite the looming deadline, financial markets responded mildly. Stocks edged down slightly, and the dollar held steady against the euro. Liquor companies saw mixed movements: Diageo rose 1%, while Pernod Ricard and Rémy Cointreau fell 1% and 2.4%, respectively.

Since returning to the White House, Trump has used tariffs to push companies to invest domestically and protect US manufacturing. His April "Liberation Day" tariff plan—initially a 10% duty—sparked global concerns, but repeated delays and reversals have made investors more cautious in their reactions.

In Asia, South Korea’s Trade Minister Yeo Han-koo said an "in-principle" deal could be reached before August 1. He suggested Seoul may consider greater US access to its agriculture markets, while protecting strategic sectors. “Twenty days are not enough to finalise a full treaty,” Yeo noted, “but we can aim for a basic agreement first.”

South Korea hopes to avoid the same 25% tariff threat that Japan currently faces as both countries rush to secure a compromise with Washington.