EU leaders are in a race against time as they gather for an urgent summit in Brussels, grappling with the looming threat of Donald Trump’s staggering 50% tariffs on imports. With a critical July 9 deadline fast approaching, the stakes have never been higher for the European Union, whose economies could face devastating repercussions if a trade deal isn’t struck soon.

At the forefront of discussions, leaders are still reeling from a historic NATO summit where they pledged to boost defense spending by 5% of GDP—a move they hope will bolster their bargaining power with the Trump administration. The atmosphere is charged, as EU leaders, including European Commission President Ursula von der Leyen, strategize on whether to aggressively negotiate for better trade terms or to expedite a deal to avert financial disaster.

Germany’s Chancellor, Friedrich Merz, is particularly vocal, emphasizing the need to shield the German auto industry from the impending tariffs. The pressure is palpable; a unified front is essential as they navigate this precarious moment. However, internal divisions threaten to undermine their efforts, notably Hungary’s veto power over Ukraine’s EU accession and ongoing sanctions against Russia—issues that could further complicate negotiations.

Meanwhile, the humanitarian crisis in Gaza adds another layer of urgency, with leaders like Spain’s Prime Minister Pedro Sanchez calling for a suspension of the EU’s association agreement with Israel over alleged human rights violations. This divisive issue has sparked frustration among member states, highlighting the fractures within the EU as they confront multiple crises simultaneously.

As the clock ticks down, the European Council must act decisively to avert an economic catastrophe while striving for unity in the face of geopolitical turmoil. The next steps taken in Brussels will be crucial in determining the EU’s economic future and its role on the global stage.