EU Pushes for U.S. Tariff Exemptions Ahead of Trade Deadline
Brussels, Belgium

📰 EU Pushes for U.S. Tariff Exemptions Ahead of Trade Deadline
📍Brussels, Belgium

The European Union has formally requested that the United States grant early exemptions on certain import tariffs, mirroring a recent deal between the U.S. and the United Kingdom. According to a July 1 report by Politico Europe, the EU insists that key elements of a comprehensive trade agreement must be concluded before the looming July 9 deadline, even if finer details are still under negotiation.

Several EU member states have communicated to the European Commission that no deal will be acceptable without upfront tariff relief. Although the Commission holds exclusive authority over trade policy for the 27-nation bloc, it traditionally integrates input from national governments during external negotiations.

The EU’s demand aligns with the terms of the U.S.-UK agreement, which maintains a baseline 10% tariff but suspends or reduces duties on automobiles and steel immediately upon signing the deal.

The Financial Times reported that during a closed-door meeting last week, EU ambassadors pressed Maroš Šefčovič—Commissioner for Trade and Economic Security—to adopt a tougher stance as he prepares for key talks in Washington.

Šefčovič is expected to meet with U.S. Commerce Secretary Howard Rutnick and U.S. Trade Representative Jamison Greer on July 3 in what will likely be the final in-person negotiation before the July 9 cutoff. Discussions are expected to center on a two-page U.S. draft of key trade principles.

While Šefčovič remains committed to reducing or eliminating the 10% base tariff, he may accept maintaining it under specific conditions if a broader agreement is reached.

If no deal is struck by the deadline, U.S. tariffs on EU goods could rise to as high as 50%.

Although internal assessments within the EU suggest the talks will likely avoid total failure, officials acknowledge that prolonged disagreements between member states—particularly since formal negotiations began in April—have weakened the Commission’s negotiating power.

Germany is pushing for a rapid deal, even if imperfect, whereas France is strongly against any acceptance of “imbalanced” terms, including continued baseline tariffs.

The push for tougher negotiation tactics is influenced by President Trump’s recent diplomatic wins, including agreements with the UK and a temporary truce in trade tensions with China.

Ted Murphy, an international trade lawyer with Sidley Austin LLP, warned that the EU’s approach risks miscalculation: “The EU is treating this like a traditional trade negotiation, which is a critical mistake. From Washington’s perspective, it’s more about dictating terms of surrender.”

Reported from Brussels, Belgium – World News Economic Desk
#EUUSTradeTalks #TariffNegotiations #Šefčovič #TrumpTradePolicy #Geopolitics #EUCommission #USCommerce

---