EU Considers 10% Universal Tariff Deal with US Amid Trade Tensions

The European Union is prepared to accept a trade agreement with the United States that imposes a 10% universal tariff on a broad range of exports, contingent on Washington reducing duties in key sectors like pharmaceuticals, semiconductors, and commercial aircraft. Negotiations are underway as the July 9 deadline looms, with the EU seeking exemptions to mitigate the impact of steep US tariffs on automobiles, steel, and aluminum.

European Commission officials acknowledge the proposal slightly favors US interests but remain optimistic about reaching an interim deal. Failure could trigger a 50% blanket tariff on EU exports and prompt retaliatory measures. German Chancellor Friedrich Merz has urged swift action, while EU leaders maintain that "all options remain on the table."