The European Union will not receive a letter from President Donald Trump detailing higher tariff rates for the union, according to new reports.
The European Union is reportedly negotiating with the U.S. a new tariff deal with a baseline rate of 10%
Andrew Harnik/Getty Images
The European Union will not receive a letter from President Donald Trump detailing higher tariff rates for the union, according to new reports.
EU sources familiar with the matter told Reuters on Monday that it won’t be receiving a letter. As the union negotiates a more permanent deal, the U.S. has offered the EU a tariff rate of 10% on all EU goods with some exceptions, sources familiar with the matter told Politico.
On Monday, President Donald Trump began posting letters detailing higher tariff rates to different countries — including Japan and South Korea — on his social media platform Truth Social.
Despite the flurry of letters, nothing appeared to be set in stone. Trump left the door open for countries to negotiate their way out of the tariffs. “These tariffs may be modified, upward or downward, depending on our relationship with your country,” the president's letters said.
Reportedly the EU is looking into exemptions to President Trump’s starting rate of 10%, and some EU sources told Reuters that the European Commission is close to an agreement with the U.S.
The agreement potentially could include exemptions to the tariff threshold rate of 10% for aircrafts and its parts, some medical equipment, and spirits, sources familiar with the matter told Reuters.
EU automakers that export vehicles from the U.S. could import their vehicles at a lower tariff rate, sources familiar with the matter told Reuters, if a new deal between the EU and U.S. goes through. Currently, the baseline tariff rate for automobiles is 25%.
According to Reuters, the Commission told EU envoys on Monday that the EU can choose between an “unbalanced deal or facing more uncertainty.” They said that the U.S. could still add more tariffs or demand more concessions from the union, Reuters reports.
The Trump administration's deadline for trading partners to renegotiate their agreements with the U.S. might be slipping toward the start of August, which would give countries about three more weeks if it's extended beyond President Trump’s self-imposed July 9 deadline.
"Tariffs go into effect Aug. 1, but the president is setting the rates and the deals right now," Commerce Secretary Howard Lutnick said during an exchange with reporters on Sunday.
So far, the U.S. has negotiated interim trade deals with China, the U.K., and Vietnam.
—Joseph Zeballos-Roig contributed to this article.
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