EU-US Trade Negotiators Meet as Trump's July 4 Tariff Deadline Looms; Section 301 Investigations Underway After CIT Ruling

European Union and US trade negotiators held scheduled meetings on May 10, 2026 as Trump's July 4 deadline for the EU to ratify a trade deal — or face escalating tariffs — approached. The talks came days after the Court of International Trade struck down Trump's 10% global tariff under Section 122 of the Trade Act of 1974 on May 7 (the second major tariff legal defeat of 2026, after the Supreme Court's February IEEPA ruling). The Trump administration vowed an immediate appeal and simultaneously launched formal Section 301 investigations against the EU, Mexico, China, and more than a dozen other countries to build replacement tariff authority before the 150-day Section 122 window expires in July 2026. As of early May 2026, the overall effective US tariff rate stands at approximately 11.8% — down from the 27% peak during Liberation Day but still at the highest level in the modern era. The EU trade talks were complicated by the US-Iran war's impact on global energy prices and supply chains, which have strained transatlantic economic relations. European allies were also pushing back on Trump's separate military burden-sharing demands. The average US household is paying approximately $1,500/year in additional tariff costs per Moody's and the Peterson Institute for International Economics. CBP was still processing approximately $166 billion in IEEPA tariff refunds to over 56,000 importers via the CAPE portal, following the Supreme Court's February ruling.