EU sees potential for reciprocal 10% tariffs with US

According to five sources familiar with the matter who spoke to Reuters, European officials are starting to come to terms with the possibility of mutual 10% import tariffs with the US after enduring lengthy negotiations.

These discussions began when US President Donald Trump announced sweeping tariffs on key trading partners in April, aiming to reduce the trade deficit with the EU. American Commerce Secretary Howard Lutnick has reportedly dismissed the idea of lowering the base tariff rate below 10%, which applies to most European goods exported to the US.

Initially, the EU opposed the move, pushing for reduced duties on imported products. However, regional officials have recently admitted that their efforts haven’t been effective, experts said.

Trump has already imposed steep tariffs on European exports, including 50% on steel and aluminum and 25% on cars. With additional duties on other goods set to rise from 10% to 50% by July 9, the EU is racing to negotiate a deal with the US before the deadline.