09 July 2025

Sources familiar with the matter say the European Union (EU) will not receive a tariff hike notice from the United States. Instead, the bloc is seeking the possibility of being exempted from Washington’s baseline 10% tariff.

U.S. President Donald Trump has begun sending a series of letters to trade partners, notifying them of a sharp increase in tariffs on goods they export to the U.S. market. These tariffs are expected to take effect starting August 1.

According to three sources familiar with the matter, the EU is nearing a deal with the Trump administration. The final agreement could involve the EU making limited concessions—specifically, accepting the U.S. baseline 10% tariff on aircraft and parts, certain medical equipment, and spirits.

The EU is moving closer to a deal with the Trump administration, which includes accepting a number of limited concessions.

Two other sources also revealed that the EU is considering a special agreement for the automotive sector. This deal would allow EU carmakers with manufacturing and export operations in the U.S. to import more vehicles from Europe into the American market at a lower tariff rate than the current 25%. Notably, the agreement would significantly benefit German automakers, who operate several major factories in the U.S.

In a late meeting with EU envoys on July 7, the European Commission (EC) made it clear that EU countries are facing a choice: either accept an imbalanced deal or confront further instability. The Commission emphasized its goal of reaching a broader and more balanced trade agreement with the U.S.

The Commission also warned that there is no guarantee the Trump administration won't impose additional tariffs or demand further concessions in the future.

Currently, the EU is subject to a 50% U.S. tariff on steel and aluminum, 25% on automobiles and parts, and 10% on most other products. The U.S. is also considering imposing additional tariffs on EU pharmaceuticals and semiconductors.

Source: VTV online