The United States has reportedly presented the European Union with a proposed trade agreement outlining a base tariff of ten percent on all EU goods. According to Politico, citing an EU diplomat and a national official, exceptions would be made for sensitive sectors such as aircraft and spirits.
The Trump administration announced Sunday a postponement of the deadline for reinstating its comprehensive tariffs, extending the date to August 1st. Countries that fail to reach a deal by that date will revert to tariff levels in place as of April 2nd.
The details of the potential agreement remain subject to change, the diplomats told Politico. Washington has, however, so far refrained from excluding industries such as automobiles, steel, aluminum and pharmaceuticals. Germany had advocated for sector-specific agreements for these industries. France, Italy and Ireland are reportedly satisfied with the exemptions granted to spirits and aircraft production.
EU Trade Commissioner Maros Sefcovic is in communication with the US government following a phone call on Sunday between President Trump and European Commission President Ursula von der Leyen. He emphasized the sensitivity of these discussions and convened a meeting with EU ambassadors. The meeting, described as “bleak” by diplomats, highlighted the lack of guarantees from the US government regarding further reversals of tariffs.
On Monday, President Trump initiated a series of letters to various nations, detailing their respective tariff rates, set to take effect on August 1st. South Korea and Japan were the initial recipients.
Further letters were directed to Malaysia (25% tariff), Kazakhstan (25%), South Africa (30%), Laos (40%), Myanmar (40%), Thailand (36%), Cambodia (36%), Serbia (35%), Bangladesh (35%), Indonesia (32%), Bosnia and Herzegovina (30%) and Tunisia (25%).
