The United States has reportedly presented the European Union with a proposed trade agreement that includes a baseline tariff of ten percent on all EU goods. According to Politico, citing an EU diplomat and a national official, exemptions would be made for sensitive sectors such as aircraft and spirits.
The Trump administration postponed the deadline for reimposing its broader tariffs to August 1st, signaling potential consequences for nations failing to reach a trade agreement. Tariffs for those countries would revert to levels in place on April 2nd.
While the specific terms of a potential deal remain fluid, Washington has not indicated exemptions for key industries including automobiles, steel, aluminum and pharmaceuticals. Germany, in particular, had advocated for sector-specific agreements for these sectors. France, Italy and Ireland are perceived to be satisfied with the exemptions granted for spirits and aircraft.
EU Trade Commissioner Maros Sefcovic is currently in contact with the US government following a phone call between President Trump and European Commission President Ursula von der Leyen. He underscored the seriousness of these negotiations and convened discussions with EU ambassadors. A meeting on Monday evening, described by diplomats as “gloomy” revealed that Brussels has received no guarantees from the US regarding further shifts in tariff policies.
Earlier on Monday, President Trump initiated a series of letters to various countries outlining impending tariff rates. South Korea and Japan were the initial recipients, facing a 25 percent tariff effective August 1st.
The correspondence extended to: Malaysia (25 percent), Kazakhstan (25 percent), South Africa (30 percent), Laos (40 percent), Myanmar (40 percent), Thailand (36 percent), Cambodia (36 percent), Serbia (35 percent), Bangladesh (35 percent), Indonesia (32 percent), Bosnia and Herzegovina (30 percent) and Tunisia (25 percent).