According to reports from Reuters and Euronews, U.S. President Trump issued tariff letters to 14 countries on July 7, notably excluding the important trading partner, the European Union (EU). Sources indicate that the U.S. and EU are likely to reach a preliminary agreement by September 9, which may include a 10% "baseline tariff" imposed by the U.S. The EU seeks tariff exemptions for products such as airplanes and their parts, medical equipment, and spirits.
Currently, the EU is facing a 50% tariff on steel and aluminum, a 25% tariff on cars and automotive parts, as well as the proposed 10% baseline tariff. Trump has previously threatened to raise tariffs on EU products to 50% if a deal is not reached. Reuters reported on the 7th that the U.S. and EU are close to an agreement, with the EU advocating for limited exemptions on the 10% baseline tariff for airplanes, medical equipment, and spirits. Euronews stated that the agreement is expected to be finalized on the 9th and will take effect on August 1.
On July 8, Bernd Lange, Chairman of the European Parliament's Trade Committee from Germany, stated that the U.S. is unlikely to abandon the baseline tariff, as it serves as a "source of revenue." He revealed that EU aircraft and spirits would be exempt from the baseline tariff, but it remains uncertain whether wine will also receive an exemption. He added that the EU continues to negotiate with the U.S. regarding automotive tariffs, which are crucial for Germany. However, the European Commission acknowledged that it cannot guarantee that the Trump administration will not impose further tariffs or demand additional concessions from the EU in the future.
Related News:
Trump says no extensions will be granted after August 1 deadline
Trump signs executive order to extend tariff deadline to August 1
Comment