EU Officials Brace for 10% Baseline on U.S. Trade Tariffs

European officials face a hard stance from the U.S. with a 10% baseline on reciprocal tariffs in a potential trade agreement, as negotiations with the EU persist. Despite efforts to lower this rate, the U.S. is resolute, seeing revenues from global tariffs, pressing EU negotiators further.

In the wake of tough negotiations, European officials anticipate the U.S. enforcing a 10% baseline on reciprocal tariffs within any potential trade pact, reports indicate. The U.S. insists this rate covers most EU exports, reflecting President Trump's approach to altering the trade deficit.

EU negotiators persistently push for reduced tariffs, although success appears arduous due to the U.S.'s continued withdrawal of revenue from tariffs, sources reveal. As discussions progress, there remains little EU acceptance of the 10% rate; however, altering it is seen as increasingly improbable.

The European Commission, representing 27 nations, has not yet commented, nor has the U.S. administration, signaling a solid resolve on maintaining these tariffs. The stance has already prompted seismic shifts among European businesses, including those in automotive and pharmaceuticals, juggling with the implications.

(With inputs from agencies.)