US Proposes Maintaining 10% Tariff on EU Goods, Excluding Certain Sensitive Sectors
The US government has recently proposed a new approach to the European Union (EU), aiming to maintain a basic tariff of 10% on all goods from the EU, with exceptions for sensitive sectors such as aviation and spirits. This information was revealed by an EU diplomat and a national official in a conversation with Politico.
Previously, the Trump administration had announced an extension of the comprehensive tariff application until August 1. After this date, the tariff will revert to the April 2 rates for countries that have not reached a new trade agreement with the US.
From August 1, South Korea and Japan will face a 25% tariff – they are the first countries to receive a notification of new tariff rates from the US.
EU Trade Commissioner Maroš Šefčovič is actively negotiating with the Washington administration, especially after the Sunday phone call between President Trump and European Commission President Ursula von der Leyen. Two EU diplomats reported that Šefčovič privately informed EU ambassadors and believes the European Commission does not expect to receive one of the aforementioned tariff letters from the US.
However, the trade negotiation process remains unstable and largely depends on Trump's final decision. Washington has not yet made any commitments regarding tariff exemptions for sensitive industries such as automotive, steel, aluminum, or pharmaceuticals – something the EU has repeatedly requested. Nevertheless, countries like France, Italy, and Ireland are expected to be satisfied if exemptions are granted for the aviation and alcoholic beverage sectors.
White House spokesperson Karoline Leavitt confirmed on Monday that an executive order will be issued to formalize the tariff suspension extension.
Before the order is published, the EU continues to operate based on the previous July 8 timeline and remains committed to reaching an agreement with the US before Wednesday this week.
Irish Trade Minister Simon Harris also confirmed on Monday evening that "we can expect an extension of the current tariff status until August 1, to provide more time for the EU and US to reach a principled agreement."
However, the EU is currently facing a difficult situation: accepting an imbalance in trade relations with Washington or continuing to face unexpected changes from the Trump administration. In a Monday evening meeting – described by diplomats as gloomy – Brussels expressed concerns about not receiving any guarantees from the US about avoiding further sudden changes in tax policy.
The European Commission declined to comment, only stating that "negotiations are ongoing."
