FX.co ★ EU Pushes for Concessions as U.S. Tariff Deadline Looms

The European Union is open to negotiating a trade deal with the United States, which includes a general 10% tariff on many EU exports. However, the EU is advocating for lower tariffs on critical sectors like pharmaceuticals, alcohol, semiconductors, and aircraft, according to Bloomberg News. This proposed trade agreement aims to address not only tariff barriers but also non-tariff obstacles, enhance U.S. purchases of EU goods, and foster broader cooperation. Furthermore, the EU is negotiating for quotas and exemptions to mitigate the effects of current U.S. tariffs—currently set at 25% on vehicles and parts, and 50% on steel and aluminum. Although the European Commission acknowledges that the potential deal may marginally favor the U.S., it deems the arrangement acceptable. The EU faces a deadline of July 9 to reach a final agreement before nearly all its exports to the U.S. could see a significant tariff increase to 50%. President Trump has implemented widespread tariffs on U.S. trading partners as part of an effort to boost domestic manufacturing, fund tax cuts, and respond to perceived unfair trade practices.