Majority of EU countries agree to 10% tariffs to resolve trade dispute with US — Reuters

On Thursday, EU leaders must inform the European Commission whether they’re ready to quickly strike a trade deal with the US under the current, far from perfect conditions, or keep negotiating in hopes of securing better terms. According to Reuters, most are leaning toward the first option to avoid further escalation of tensions.

The EU is pushing for a mutually beneficial trade deal with the US, but Washington is holding firm on keeping 10% tariffs on most European goods and may increase them if negotiations stall. German Chancellor Friedrich Merz warned that escalating the trade dispute would hurt both sides, expressing hope for reaching an agreement before July.

As noted by Reuters, several EU countries are ready to accept the 10% tariffs to shield their domestic industries. The key question now is whether the bloc will retaliate with countermeasures against the US. The EU has already approved but not yet implemented tariffs on 21 billion euros ($24.6 billion) of American goods, and is considering a further package of duties on up to 95 billion euros ($111.7 billion) of US imports.