Brussels (Brussels Morning Newspaper) – European Union officials are seeking urgent tariff relief in key sectors as part of any US trade deal, with a deadline of 9 July. However, they anticipate that even the most favourable agreement will involve some degree of asymmetry, according to EU diplomats speaking to Reuters.
The European Commission is making three key points in Washington this week, even as it acknowledges the US baseline tariff of 10% as unavoidable.
Both flanks are working towards a general agreement, with the finer details to be sorted out later. A brief negotiation document sent by Washington last week from the Trump administration only outlined what it expects from Brussels, without making any concessions itself, according to EU diplomats familiar with the matter.
What sectors does the EU want included in the deal?
For any deal, the EU is aiming for a reduction in baseline tariffs to pre-Trump levels or a zero-for-zero tariff arrangement in cases where one previously existed. This specifically means lower tariffs for alcoholic drinks and medical technology, which the US currently applies a 10% tariff to.
Brussels is also seeking a deal to encompass commercial aircraft and parts, pharmaceuticals, and semiconductors – sectors that the US is currently investigating, but has yet to impose additional tariffs on. Trump stated in June that the pharma duties would be announced “very soon”.
Secondly, the European Union is seeking a concession from US President Donald Trump on the 25% tariff on cars and car parts, according to the diplomats, as well as an immediate reduction in US steel and aluminium import tariffs, which Trump increased to 50% in June. One diplomat described cars as a “red line” for the bloc.
Thirdly, the EU is seeking tariff relief to begin as soon as an initial agreement is reached, rather than waiting weeks or months for a final deal. According to the sources, several EU members have made it clear that a deal without this would be unacceptable.
Bloc trade chief Maros Sefcovic and the European Commission president’s cabinet head, Bjoern Seibert, are heading to Washington later this week in a bid to strike a deal.
How might Trump’s 10% tariff impact EU trade?
Trump has put higher tariffs on hold until 9 July to make deals with global trade partners. He has stated that countries without deals will face a 10% US baseline tariff on goods, which could rise to as much as 50%. For the EU, the rate is 20%, although Trump has also threatened a 50% duty on all EU imports.
On the other hand, European Commission President Ursula von der Leyen has taken a firm but pragmatic stance on the ongoing U.S. tariffs dispute. She has emphasised that tariffs are taxes that hurt businesses and consumers, advocating consistently for a zero-for-zero tariff agreement between the EU and the U.S. to eliminate these levies on both sides.
