According to a recent report, the US has proposed a tariff deal to the European Union that includes a 10% flat rate on all incoming goods, with exceptions for aircraft and alcoholic beverages.
New Tariff Proposals
As reported by Politico, the new tariff agreement from the US maintains a 10% rate on all incoming goods, excluding aircraft and alcohol. Meanwhile, the Trump administration has stated that the reinstatement of previous tariffs will be postponed, allowing countries more time to negotiate new trade deals.
European Union's Response
The European Commission has refrained from providing official comments, stating that "negotiations are ongoing." EU Trade Chief Maroš Šefčovič noted that expectations for a response from the US became less optimistic following a private call between Trump and Ursula von der Leyen.
Outlook for the Trade Agreement
Despite some exemptions, such as for aviation and alcohol, the terms seem to be one-sided. Countries like France, Italy, and Ireland may stand to benefit from the new terms; however, other member states express dissatisfaction. Ireland’s Trade Minister confirmed that the current status would be extended until August 1, allowing Brussels an additional three weeks to negotiate and secure an agreement in principle.
Trade negotiations between the US and the European Union continue amidst uncertainty. The success or failure of these discussions could significantly impact economic relations between the two regions.
