Trump Dismisses EU's Appeals and Refuses to Compromise on Tariffs as Deadline Approaches | Carscoops

      In addition to the 10 percent baseline tariff, there's a 50 percent tariff on steel and aluminum imported from Europe.

      Europe aims to reach an agreement before July 9, when further increases in tariffs on more products could occur.

      Lowering tariffs may prove difficult, as they currently provide significant revenue for the US economy.

      President Donald Trump countered that Europe has not yet proposed a fair deal to the US.

      A few months back, European officials were cautiously hopeful about negotiating with US President Donald Trump to either reduce or remove the higher 10 percent tariffs on imports. However, that optimism seems to be diminishing rapidly.

      A recent report indicates that some officials may either be losing faith in reaching a resolution or have accepted that the current tariff situation might persist.

      As it stands, nearly every product from the European Union sold in the US is subjected to a 10 percent baseline tariff, not including specific tariffs such as the 25 percent on imported cars. This makes the trade climate quite challenging for the EU.

      Some sources indicate that EU negotiators are still advocating for a reduction of the baseline rate to below 10 percent. However, an unnamed official mentioned to Reuters that achieving this goal has become increasingly difficult now that the US benefits from the revenue generated by these tariffs. “10% is a contentious issue,” the official stated. “We are urging them, but they are now benefiting financially.”

      Europe is under pressure as time is running out.

      The EU has previously declared that it would not agree to a double-digit baseline rate like the one recently accepted by the UK. Conversely, US Commerce Secretary Howard Lutnick has excluded the possibility of reducing the baseline tariff below 10 percent. Additionally, Europe must contend with a 50 percent tariff on steel and aluminum, as well as a 25 percent tariff on automobiles.

      European officials are now racing against time, eager to finalize a deal before July 9, the deadline when tariffs on many other goods could potentially surge to as high as 50 percent.

      No Agreement Yet

      Earlier this week, President Trump stated to the media following his unexpected departure from the G7 summit that the EU has not yet provided what he considers to be a fair deal. “We’re in discussions, but I don’t feel they’re offering a fair deal yet,” he remarked. “They will either make a reasonable agreement or they will have to pay whatever we determine they must pay.”

      On the EU side, European Commission President Ursula von der Leyen confirmed that discussions are still "progressing." She expressed a more optimistic view of the process, noting, “It’s complex, but we are making progress, which is positive, and I am pushing hard for further acceleration. So our negotiations are mixed, and we’ll see what the outcome will be.”