BRUSSELS — The European Union can at most “hope to be treated like the United Kingdom” when it comes to a trade agreement with the U.S., Lithuania’s President Gitanas Nausėda told POLITICO.
“It would probably be the best scenario,” Nausėda said on the sidelines of a summit with European leaders on Thursday, where the looming tariff war has edged its way onto the agenda.
“But the United Kingdom, in the eyes of the United States, it’s a little bit different as a partner. And I hope we will be treated like the United Kingdom — but we will see,” he added.
The remarks show how the mood has changed across the bloc on the potential pact it hopes to agree with the Donald Trump administration. Brussels at first trashed the agreement that London struck with Washington, but now the EU is coming to terms with the prospect that keeping a 10 percent baseline tariff is the best it can hope for.
Leaders expect an update from the European Commission over dinner on its talks with the Trump administration — just as concerns mount across the bloc that all goods might be hit with a “reciprocal” 50 percent tariff as soon as July 9 if Brussels and Washington fail to strike a deal.
The Lithuanian leader also said that the EU should take advantage of positive momentum between Brussels and Washington after NATO allies agreed a day earlier to boost defense spending to 5 percent of gross domestic product — a figure Trump had demanded for months. Spain has expressed concerns over finding the funds, but did not block language supporting the push.
After the NATO summit in The Hague, “there is more understanding about our challenges and we understand better the American approach,” he added. “Right now we have very positive momentum and we have to use it to strengthen this transatlantic relationship.”
However, with the deadline looming, some are concerned that a last-minute deal may be a bad one, with Germany pushing for a quick solution while others, like France, are wary of signing up to a suboptimal arrangement.
“A full agreement on tariffs in such a short time is complicated. The only thing that is possible before July 9 is an agreement in principle — like the one reached with the U.K. and China — based on some principles. The question is: What are these principles?” said an EU diplomat.
Gregorio Sorgi contributed to this report.
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