The European Union is willing to accept a trade agreement with the US that includes a 10% universal tariff over many of the bloc’s exports, but wants the US to commit to lower rates in key sectors such as pharmacists, alcohol, semiconductors and commercial aircraft.
The EU is also pressuring the US for quotas and exemptions to effectively reduce the 25% Washington tariff over automotive and automotive parts, as well as the 50% tariff on steel and aluminum, according to people familiar with the subject.
The European Commission, responsible for the bloc’s commercial issues, sees this agreement as slightly favorable to the US, but still something it could accept, the sources said, which spoke on condition of anonymity.
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The EU has until July 9 to close a trade agreement with Donald Trump before tariffs on almost all the bloc exports to the US rise to 50%. The US president imposed tariffs on almost all of his business partners, claiming to want to bring back domestic manufacturing, finance the extension of tax cuts, and prevent other countries from taking advantage of the US.
A Commission spokesman did not immediately respond to a commentary request.
According to BloombergEU and USA are increasingly confident that a provisional agreement can be reached until July 9, allowing negotiations to continue after the deadline. Any agreement would also cover tariff and non -tariff barriers, purchases of strategic American products and define additional cooperation areas, according to sources.
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EU chief of commerce, Maros Sefcovic, will lead a delegation to Washington this week to try to advance in the negotiations, the sources said. The bloc continues to believe that an agreement of principle is the best scenario, but authorities could not clarify how long such provisional arrangements would last as long as negotiations continue.
The commission also wants to ensure that sector rates currently in force in the US – such as cars and metals – as well as future fares planned by Washington, were treated from the outset, two of the sources said.
The EU seeks to address non -tariff barriers mainly through its simplification agenda and proposed to explore strategic purchases in various areas, such as liquefied natural gas and artificial intelligence technologies. The block is also open to working with the US in common economic security challenges.
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The EU estimates that US tariffs currently cover € 380 billion ($ 445 billion), or about 70%of its exports to the US.
The commission informed the Member States on Monday that the bloc received a proposal from the US covering tariffs, non-tariff trade barriers and strategic cooperation areas, sources said. Specific details of the American offer, such as possible rates, were not shared with the Member States, they added.
Authorities presented four possible scenarios before next week: an agreement with acceptable level of asymmetry; an unbalanced American offer that the EU could not accept; extension of the deadline to allow the continuity of negotiations; Or Trump abandon negotiations and increase rates, the sources said.
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In the last scenario, the EU Retalie is likely with all the available options, the sources said.
Parallel to negotiations, the block continues to prepare contracted if the conversations have an unsatisfactory result.
The EU has already approved rates on € 21 billion in American products that can be rapidly implemented in response to Trump -imposed metals. They aim at politically sensitive American states and include products such as Louisiana soy, the state of Mayor Mike Johnson, as well as agricultural products, birds and motorcycles.
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The block has also prepared an additional list of rates on € 95 billion in American products in response to so -called Trump’s reciprocal tariffs and automotive tariffs. They would reach industrial goods, including Boeing aircraft., Cars manufactured in the US and Bourbon whiskey. The EU is also consulting Member States to identify strategic areas on which the US depend on the bloc, as well as possible measures that go beyond tariffs, such as export controls and restrictions on public purchasing contracts.
The EU, which seeks a mutually beneficial agreement, will evaluate any final result and, at this moment, will decide which level of asymmetry is willing to accept, said the Bloomberg previously.
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