EU Scrutinizes 10% U.S. Tariff Proposal Amid Lingering Sectoral Concerns
Trade Agreement Set to Take Shape Mid-Week
According to insider sources, a tentative pact is expected to be finalized by Wednesday, with full rollout aimed for 1 August.
The negotiation pace has accelerated as stakeholders seek to carve out exemptions from a mandatory 10% tariff in selected key sectors.
Key Milestones
- Preliminary agreement by Wednesday
- Implementation scheduled for 1 August
Strategic Focus Areas
- Technology manufacturing
- Renewable energy components
- High‑value agricultural goods
EU‑US Trade Negotiations Reach Critical Stage
The European Union and the United States are inching toward a new trade framework that would set a 10 % tariff as the baseline on EU imports, according to officials briefed by EU Trade Commissioner Maroš Šefčovič. The deal is expected to be finalized by mid‑week, with legal ratification slated for 1 August—the June 2024 deadline announced by President Donald Trump before additional tariffs could be triggered.
Key Points of the Proposed Agreement
- Baseline 10 % tariff on all EU goods, excluding aircraft and spirits.
- Uncertainty around wine exemptions.
- Current U.S. tariffs: 25 % on EU cars, 50 % on steel & aluminum, 10 % on other imports.
MEP Bernd Lange of Germany’s Social Democratic Party confirmed that the U.S. will not reduce the baseline rate, citing its importance as a revenue source. Negotiations are underway to lift the 25 % tariff on EU vehicles—a decision that could affect up to 50,000 jobs in the German car sector.
EU Concerns and Possible Retaliation
- Dominant exporters—Germany, Italy, and Ireland—are alarmed by the lack of exemptions for automobiles, steel, aluminum, and pharmaceuticals.
- The Commission has not yet decided when to enact retaliatory measures, though a preliminary list covering approximately €21 billion in U.S. products has been suspended until 14 July.
- A second, larger list originally valued at €95 billion has been trimmed to €72 billion after lobbying from industry and member states; it awaits final approval.
Commission spokesperson Olof Gill stated on Monday that no immediate action will be taken regarding the lists, leaving the timing of any counter‑tariffs still undetermined.
