EU diplomats informed POLITICO that they anticipate a 15 percent U.S. baseline tariff deal before Trump’s August 1 deadline.
“Everyone is quite tense,” said an EU diplomat.
‘They kept coming back’
Trump announced tariffs on 60 trading partners in April, ranging up to 50 percent.
The U.S. president stated that any deal with the EU will require them to “buy down their tariffs, because they’re right now at 30 percent.” This largely depends on how willing the bloc is to lower its barriers to American exports, Trump mentioned.
If Trump blocks a deal currently in progress, the EU is prepared to retaliate, European diplomats informed POLITICO. One measure would be to impose tariffs on €93 billion worth of U.S. goods, which EU countries approved on Thursday.
Last year, the United States exported around $370 billion worth of goods to the EU. A significant portion of those, along with some U.S. services exports, could be affected by EU retaliation.
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