The European Union is increasingly willing to accept a 10% residual tariff in talks with the US [World News]

Author
Foodcom News
20.06.2025
2 min reading
The European Union is increasingly willing to accept a 10% residual tariff in talks with the US [World News]
Summary
Table of contents
  • The EU is considering agreeing to a permanent 10% tariff on trade with the US to avoid higher tariffs.
  • The current suspension of tariffs expires on 9 July, threatening an increase in tariffs to 50%.
  • There is growing division within the EU: some countries want a compromise, while others prefer retaliation.
  • The European Commission has announced possible retaliatory measures worth up to EUR 95 billion.

EU prepares for difficult compromises to avoid tariff escalation

According to sources from the European Commission, Brussels is increasingly inclined to accept a 10% residual tariff (‘reciprocal tariff’) on exports to the US. This reflects pressure from the Trump administration to maintain a minimum tariff ceiling, which has become a fundamental element of the negotiations.

A suspension of higher tariffs is in place until 9 July, after which US tariffs could rise up to 50% in sectors such as steel, aluminium and automotive. The EU is pushing for an agreement before this date, as it had a record trade surplus with the US of $236 billion in 2024.

The division of positions in the EU and prospects for further action

There is a growing split within the EU over strategy: France favours retaliation, while Italy and Hungary prefer negotiations with the US. Parts of the industry, such as the beverage industry, would prefer to end the tariff dispute at 10%, even at the cost of short-term losses. For high-end car manufacturers, such a rate may be acceptable, while the masses will be affected more severely.

The European Commission has announced possible retaliations, including tariffs on US aircraft, whisky or wheat (up to €95bn), if the talks fail. In the longer term, however, the EU is considering a model modelled on the agreement with the UK, with a common ceiling of 10% tariffs and separate arrangements for key sectors.

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