U.S. President Donald Trump's unpredictable trade policies -- marked by abrupt tariff hikes, temporary suspensions and renewed threats -- have shaken confidence among traditional allies and reignited global concerns over trade stability.

BRUSSELS, June 28 (Xinhua) -- U.S.-EU trade talks have gone through multiple rounds, but with the July 9 tariff deadline approaching, European leaders remained divided at Thursday's European Council summit over whether to push for a quick deal or hold out for a more favorable one.

A QUICK DEAL OR A BETTER ONE?

European Commission President Ursula von der Leyen said Thursday that the EU had received the "latest U.S. document" for continued negotiations, though she did not disclose details of the U.S. proposals.

EU leaders now face a strategic dilemma over whether to accelerate talks to secure a deal before the deadline, or risk a prolonged trade dispute in hopes of achieving more favorable terms.

German Chancellor Friedrich Merz, whose country is among the EU's top exporters, is leading calls for a rapid resolution.

"We have less than two weeks until July 9 -- you can't negotiate a sophisticated trade agreement in that time," he said, warning that key industries, including chemicals, steel and automotive, are already under intense pressure.

But others urged caution, warning that a rushed deal could tilt the balance in favor of the United States.

"We are assessing it," von der Leyen said. "Our message today is clear. We are ready for a deal. At the same time, we are preparing for the possibility that no satisfactory agreement is reached." She added that "all options remain on the table," and the EU would defend its interests if needed.

French President Emmanuel Macron echoed this stance, saying France supports a fast and pragmatic deal but "will not accept unfair terms." U.S. Treasury Secretary Scott Bessent has indicated that Washington may consider extending the deadline for countries negotiating in "good faith."

KEY DIVIDES REMAIN

To ease tensions, the EU has proposed eliminating tariffs on industrial goods on both sides -- a move that has met with a lukewarm response from Washington.

The EU also hopes to narrow the trade imbalance by increasing imports of U.S. liquefied natural gas, arms and agricultural products, and by considering reducing auto tariffs. However, U.S. negotiators continue to press for sweeping EU concessions on value-added tax rules, digital regulation, food safety and environmental standards.

While EU officials say they are open to dialogue, they insist that core regulatory principles are non-negotiable.

"Where it is the sovereign decision-making process in the European Union and its member states that is affected, this is too far," von der Leyen said recently.

Citing diplomatic sources, AFP reported that EU leaders may be exploring a so-called "Swiss cheese" deal -- allowing for broad U.S. tariffs but securing exemptions for sensitive sectors such as steel, automotive, pharmaceuticals and aerospace.

Automobiles remain the most contentious point. Germany has proposed an "offset rule" under which the EU would allow duty-free imports of U.S. cars in exchange for the same number of EU vehicles being exempted from tariffs in the United States. The effectiveness of such a mechanism, however, remains uncertain.

A NEW TRADE CLUB WITHOUT U.S.?

U.S. President Donald Trump's unpredictable trade policies -- marked by abrupt tariff hikes, temporary suspensions and renewed threats -- have shaken confidence among traditional allies and reignited global concerns over trade stability.

At Thursday's summit, von der Leyen floated a new idea about forming a trade alliance with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Britain, Japan, and other Asian economies. She said such a coalition could serve as a foundation for reforming the World Trade Organization.