Brussels Negotiators Seek to Avert Higher Tariffs

(Reuters) – Brussels negotiators aim to prevent increased tariffs on cars, drugs, and electronics by proposing a 10% tariff on all EU exports to the U.S., as reported by Handelsblatt.

Conditions of the Offer

According to high-ranking EU negotiators, this proposal would come with certain conditions and would not be permanent.

Tariff Reductions

In exchange, the EU is willing to reduce tariffs on U.S.-made vehicles and potentially modify technical or legal barriers to facilitate U.S. car sales in Europe.

Energy Considerations

Additionally, the EU has proposed a total ban on purchasing Russian natural gas, which might increase demand for U.S. producers.

Background

The EU’s strategy reflects an understanding that U.S. President Donald Trump needs some tariff revenues to support his planned tax cuts. However, U.S. negotiators have not yet agreed to a 10% limit on import duties for EU cars.