The European Union is reportedly ready to just accept a flat 10% tariff on all exports to america in a bid to forestall steeper duties on crucial sectors like vehicles, prescription drugs and electronics.
The proposal could be pitched to Trump administration officers as a strategic concession and on a short lived foundation, in accordance with the German-language enterprise every day Handelsblatt.
“The offer to US counterparts would come only under certain conditions and would not be billed as permanent,” the paper reported, citing senior EU negotiators.
The event comes as President Trump and different world leaders meet in Canada this week for the annual G-7 summit. The gathering is anticipated to be dominated by escalating Israel-Iran conflict, in addition to ongoing commerce disputes.
Trump has already levied a ten% common tariff on imports from the EU, in addition to 25% on metal and vehicles. He has threatened to impose tariffs of as much as 50% on all imports from the 27-member bloc.
Final week, Trump warned that the US may quickly act unilaterally if progress in commerce talks stalls.
“At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it,” the president mentioned.
European officers seem more and more involved about the specter of escalating tariffs on high-value items and try to preempt additional financial pressure amid ongoing commerce tensions.
Accepting a uniform 10% tariff might function a technique to stabilize transatlantic commerce whereas sparing particular person sectors — particularly the auto trade — focused punitive measures.
Whereas particulars of the proposed situations weren’t disclosed, the transfer alerts a shift in Brussels’ strategy to commerce talks, notably because the Trump administration has favored aggressive tariff methods to strain allies and rivals alike.
European automakers and pharmaceutical firms have been particularly weak to such techniques.
The Publish has sought remark from the White Home and the European Fee.
The potential tariff deal would characterize a major compromise on the EU’s half, which has historically pushed for multilateral rules-based commerce and decrease tariffs.
Nevertheless, with international commerce tensions on the rise and election-year politics complicating negotiations, EU officers seem prepared to think about short-term measures to keep away from extra damaging outcomes.
Reuters famous that no official announcement has been made, and the European Fee has not confirmed the Handelsblatt report. The proposed deal, if pursued, would possible require additional negotiation and political approval inside each the EU and america.
The EU’s willingness to just accept a broad-based 10% tariff alerts that Brussels could also be aiming to commerce flexibility for predictability — hoping to insulate key industries from future tariff spikes whereas conserving the broader relationship with Washington on secure floor.
Though the White Home had lately paused a few of its harshest tariffs, the administration has despatched combined alerts about whether or not the reprieve, which expires on July 9, will proceed.
Treasury Secretary Scott Bessent instructed Congress that it’s “highly likely” the pause could be prolonged for international locations negotiating “in good faith.”
Trump’s commerce combat with Europe has been escalating for months. On Feb. 2, he introduced plans to impose new tariffs on the EU, prompting pressing conferences amongst European commerce ministers.
The EU responded with proposals to decrease its automobile import tariffs and enhance purchases of US liquefied pure fuel and army tools. By early April, Trump had imposed a 25% tariff on all automobile imports and a 20% tariff on all EU items, which was later lowered to 10% following negotiations.
In response, the EU suspended its deliberate retaliatory measures.
European Fee President Ursula von der Leyen warned that if no settlement is reached by the tip of the 90-day window, the EU would unleash what she referred to as “trade bazooka measures” focusing on US companies and redirected Chinese language exports.
Tensions flared once more in late Might when Trump proposed a “straight 50% tariff on the European Union,” solely to delay it two days later after a name with von der Leyen.
