Like most countries, the EU is subject to a 10 percent baseline tariff. If the two sides — representing an almost $2 trillion trade relationship — don’t reach a deal by July 9, that will go up to 50 percent, according to Trump’s threats. The U.S. also levies a 50 percent tariff on steel and aluminum, plus 25 percent on cars.
On the eve of the G7 summit in the Canadian Rockies, the European Commission and Council presidents urged Trump — without naming him —to end his tariff war.
Meanwhile, Reuters and the German financial daily Handelsblatt reported that the EU is willing to accept a 10 percent tariff.
“As agreed by [European Commission] President Ursula von der Leyen and President Trump, the European Commission remains fully engaged in seeking a common solution by July 9,” Pinho said. “Our clear preference is a negotiated, balanced, and mutually beneficial outcome. However, if a satisfactory agreement cannot be reached, all instruments and options will remain on the table.”
EU trade ministers in May already urged the Commission not to accept a deal like the U.K.’s, which does allow the 10 percent so-called “reciprocal” tariff.
Brussels has repeatedly offered Trump a zero-for-zero mutual deal on industrial goods, but that proposal has been stranded in recent weeks, with the Trump administration dreading the need to pass it via Congress to adopt it.
