EU Reportedly Considers Accepting 10% Trump Tariffs To Avoid Higher Levies On Cars, Drugs, And More

The report added that the EU was prepared to reduce tariffs on U.S.-made vehicles and streamline its regulatory process to facilitate easier sales of U.S. cars in the region.

The EU is considering accepting a flat 10% Trump tariffs deal on all European U.S. exports to avoid higher levies on cars, drugs, and electronics.

According to a report by Reuters citing Handelsblatt, high-ranking EU negotiators stated the 10% tariff offer would come with certain conditions. The report noted that this offer would not be billed as permanent, meaning the U.S. and EU would have to strike a more detailed trade deal at a later time.

The report added that the EU was prepared to reduce tariffs on U.S.-made vehicles and streamline its regulatory process to facilitate easier sales of U.S. cars in the region.

To make the offer more lucrative for the Trump administration, the EU is also considering a blanket ban on purchasing Russian natural gas, allowing U.S. energy companies to tap into the increased demand.

Despite this, negotiators from the U.S. have not agreed to limit import duties on European cars to 10%, the report added.

The EU’s reported offer comes days after President Trump’s ultimatum to trade partners.

During an interaction with the press at the John F. Kennedy Center for the Performing Arts last week, Trump said his administration would send letters to trade partners over the next two weeks.

“At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it,” he said.

However, the Trump administration has sent out mixed signals in this regard. In a testimony before the House of Representatives Ways and Means Committee, Treasury Secretary Scott Bessent said it is “highly likely” that the Trump administration could extend the tariff pause for countries negotiating in “good faith” with the U.S.

Meanwhile, U.S. equity markets edged up in Monday’s pre-market trading session, as the ongoing Israel-Iran conflict has not impacted crude supplies yet.

The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.61% at the time of writing.

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