EU denies plans to accept Trump’s 10% base tariff
The EU and the U.S. have been locked in technical and political talks to resolve their ongoing trade conflict, but media reports suggesting that the EU accepts a 10 percent U.S. tariff on all exports are “speculative and do not reflect the current state of discussions,” Pinho said.
“Negotiations are ongoing, and no agreement has been reached at this stage. From the start, the EU has objected to unjustified and illegal U.S. tariffs.”
Like most countries, the EU is subject to a 10 percent baseline tariff from Washington. If the two sides — whose trading relationship is worth almost $2 trillion annually — don’t reach a deal by July 9, the tariff will go up to 50 percent, according to Trump’s threats. The U.S. already levies a 50 percent tariff on steel and aluminum plus 25 percent on cars.
On the eve of the June 15-17 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 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 urged the Commission not to accept a deal like that of the U.K., which does allow the 10 percent “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.
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