<h1>US and EU rush to resolve trade dispute before July 9 deadline as tariffs threaten $2 trillion relationship</h1> The US and EU face a critical trade deadline as tariffs threaten their $2 trillion annual trade relationship. The US president imposed 20% tariffs on EU goods in April, temporarily reduced to 10% until July 9, with threats to increase rates to 50%. The EU maintains a EUR198 billion trade surplus in goods but the US leads in services. Key disputes involve agricultural barriers, health regulations, and value-added taxes. Both sides prepare retaliatory measures while negotiations continue, with economists warning of GDP losses and higher consumer prices if talks fail.