EU Eyes 10% US Tariff Deal Before Trump Deadline/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The EU is weighing a provisional trade deal with the U.S. to maintain a 10% tariff and avert Trump’s threatened 50% tariffs on European goods. Talks remain tense, with key industries like cars and steel still unresolved. EU leaders are divided on how far to compromise.
EU-US Trade Deal Quick Looks
- EU considers 10% tariff deal to avoid 50% Trump tariffs.
- Deadline looms as Trump threatens steep new duties by July 9.
- Key sectors like cars and steel remain in negotiation.
- EU countries split over quick deal versus tougher stance.
- U.S. threatens 17% tariff on European food imports.
- Von der Leyen seeks “agreement in principle” this weekend.
- €100 billion in EU retaliation tariffs kept on hold.
Deep Look
EU Scrambles To Forge Provisional Trade Deal With US To Dodge Trump’s Tariff Hike
BRUSSELS — Facing a looming deadline and the threat of punishing tariffs from President Donald Trump, the European Union is weighing a provisional trade deal with the United States that would preserve a baseline 10% tariff on most exports while keeping talks open for further sector-specific relief.
European Commission officials briefed EU ambassadors Friday following high-stakes negotiations in Washington the previous day, where Trade Commissioner Maroš Šefčovič tried to avert Trump’s threat of slapping a 50% tariff on all European goods starting July 9 if no deal is reached.
While conversations remain ongoing about possible exemptions for critical sectors like automobiles, steel, and aluminum, the outcome so far has fallen short of European expectations. Initial hopes for upfront tariff relief in key industries were tempered as U.S. negotiators held firm, leaving many issues unresolved.
Tensions Mount Over Tariff Threats
Adding to the tension, two national officials confirmed reports that the U.S. has floated the possibility of imposing a 17% tariff on European food imports. Such a move would significantly escalate the transatlantic trade dispute, placing more pressure on Brussels to reach at least a skeletal agreement.
European Commission President Ursula von der Leyen is expected to consult EU leaders individually over the weekend before deciding whether to proceed with a provisional deal. The aim would be to mirror a recent U.K.-U.S. arrangement that maintained baseline tariffs but exempted certain industries while negotiations for a broader pact continued.
However, significant divides persist among EU member states. Germany, led by Chancellor Friedrich Merz, has urged a swift agreement to protect crucial export sectors like automotive manufacturing. Meanwhile, countries including France, Spain, Italy, and Denmark are pushing for a more robust and balanced deal that would secure better terms from the Trump administration.
Three-Tiered U.S. Strategy
Diplomats say Trump’s team is categorizing trade partners into three tiers. Those with provisional agreements could see a pause on reciprocal tariffs and potential relief down the road. Countries without deals might face reinstated tariffs announced in April, such as the 20% duties previously targeted at the EU. The harshest measures would fall on those nations where negotiations have broken down entirely.
As von der Leyen prepared the ground for a minimalistic “agreement in principle,” EU diplomats remain cautious. Several warned that any deal lacking immediate tariff relief for key industries would be politically unacceptable back home.
Retaliation Still On The Table
Meanwhile, Brussels continues to keep a €100 billion package of retaliatory tariffs on standby. Officials hope holding back on immediate retaliation will leave room for diplomacy and prevent the perception that the EU is eager to escalate tensions further.
Trump, who has been consulting his advisors ahead of Monday’s crucial discussions, has kept European leaders guessing. Any formal announcement of tariffs or a deal would likely follow those talks.
For now, the EU walks a tightrope—balancing economic damage from new U.S. tariffs against the political risk of conceding too much in negotiations. As the July 9 deadline approaches, the stakes for Europe’s economy and transatlantic relations have rarely been higher.
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