The European Union (EU) is reportedly willing to accept a trade deal with the United States that includes a flat 10% tariff on many of its exports. However, it is pushing for exceptions and lower rates in key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. According to sources cited by Bloomberg, the EU is also seeking quotas and exemptions to significantly reduce the current 25% U.S. tariffs on cars and car parts, as well as the 50% tariffs on steel and aluminum.
The European Commission, which handles trade matters for the bloc, believes the proposed framework slightly favors the U.S., but could still be acceptable. Negotiations are intensifying ahead of a July 9 deadline, after which tariffs on nearly all EU exports to the U.S. could jump to 50%.
U.S. President Donald Trump has imposed tariffs on nearly all of America’s trade partners, claiming they are necessary to boost domestic production, fund tax cuts, and prevent other countries from taking advantage of the U.S. The EU and the U.S. are increasingly confident an interim agreement can be reached before the deadline, allowing negotiations to continue beyond it.
Any potential deal would cover both tariff and non-tariff barriers, access to key American goods, and outline additional areas of cooperation. EU Trade Chief Maroš Šefčovič is set to lead a delegation to Washington this week to push talks forward.
While the EU continues to believe a principle-based agreement remains the best outcome, officials have not clarified how long any temporary arrangements might last during ongoing negotiations. The Commission also wants to ensure that existing sector-specific tariffs — such as those on automobiles and metals — and any future tariffs planned by Washington, are addressed upfront.
In parallel, the EU continues preparing countermeasures in case talks fail to yield a satisfactory result. It has already approved tariffs worth €21 billion on U.S. products as a rapid response to metal tariffs, targeting politically sensitive U.S. states and products like soybeans from Louisiana, agricultural goods, poultry, and motorcycles. A separate list of retaliatory tariffs on $95 billion worth of U.S. goods — including Boeing aircraft, American-made cars, and bourbon — has also been prepared in response to potential auto tariffs.
The EU is consulting with member states to identify strategic sectors where the U.S. relies on the bloc, as well as possible measures beyond tariffs, such as export controls and restrictions on procurement contracts.