EU officials say they’ll have to pay higher Trump tariffs than the UK: report



European Union negotiators are nearing a trade deal with President Donald Trump that would slap the 27-member block with higher tariffs than those imposed on the United Kingdom, according to multiple EU diplomats and officials.

Brussels is prepared to sign a temporary “framework” agreement that would set the US president’s “reciprocal” tariffs at 10% — matching the baseline duty already imposed on the UK.

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However, EU negotiators do not expect to secure the same carve outs that the US afforded to British steel, cars and other products subject to sectoral duties, the Financial Times reported on Wednesday.

European Union negotiators are nearing a trade deal with President Donald Trump that would impose higher tariffs on the bloc than those granted to the United Kingdom. AFP via Getty Images

Trump, who supported the UK’s 2016 decision to leave the EU, is also demanding 17% tariffs on EU agrifood products.

The proposed agreement has stirred concern in Brussels, which had expected its larger economic clout would provide leverage in talks with Washington.

“The UK agreement was better than this,” one EU diplomat told FT. “It’s a surprise given how long we have negotiated.”

Anna Cavazzini, chair of the European Parliament’s internal market committee, criticized the bloc’s earlier posture.

“Not directly responding to illegal Trump tariffs in April was a mistake, leaving little room for the [European] commission to cut down existing rates,” Cavazzini told FT.

UK Prime Minister Sir Keir Starmer moved early to reach a deal, pairing business adviser Varun Chandra with Commerce Secretary Howard Lutnick to lead the talks.

Trump, who supported the UK’s 2016 decision to leave the EU, is also demanding 17% tariffs on EU agrifood products. Getty Images

“We approached it like a business deal not a trade negotiation,” a British official told FT.

“We’ve played it straight, understood what the US is trying to achieve, matched our people to theirs, and been flexible.”

By contrast, the EU’s negotiation strategy has drawn criticism from both industry and governments. LVMH chief executive Bernard Arnault said the bloc got off to a “bad start,” especially compared to the UK, which “negotiated very well.”

German Chancellor Friedrich Merz said the European Commission’s approach was “far too complicated” and urged a “rapid” deal.

Trump stated the US was “probably two days off” from sending the EU a formal letter outlining its planned tariffs. Merz said negotiations were “not easy” but remained “cautiously optimistic” of a breakthrough this week or by the end of the month.

Without a deal, tariffs on EU goods could rise to either 20% or 50% on Aug. 1, after Trump postponed a July 9 deadline.

Trump is seen third from right alongside G7 leaders in Alberta, Canada on June 16. POOL/AFP via Getty Images

The UK, which runs a trade deficit with the US, accepted the 10% baseline tariff but failed to reduce it. However, it secured better terms on “sectoral” tariffs.

London received an annual quota of 100,000 cars at a 10% tariff, a discount from the 25% levy faced by other exporters, and a zero-tariff deal on steel and aluminium, which remains unimplemented.

British negotiators also won a promise of “significantly preferential” treatment on so-called “section 232” tariffs on pharmaceuticals, part of a US investigation still underway.

The UK also obtained assurances on future 232 investigations into sectors like copper, timber and jet engines.

In exchange, the UK pledged to meet US “requirements” on China’s role in its supply chains and agreed to a tariff-free quota of 13,000 tons of beef and 1.4 billion liters of bioethanol.

Trump has continued his criticism of the EU, calling the bloc “nasty” and claiming it was set up to “screw the United States.”

The EU, meanwhile, has no guarantees that steel tariffs would be cut from their current 50% level. The US has also declined to exempt the EU from future sectoral tariffs in pharmaceuticals and semiconductors.

EU diplomats do not expect to secure the same access to the US market for British steel, cars and other products subject to sectoral duties.. a Mercedes-Benz assembly plant in Rastatt, Germany is seen above. Getty Images

The two sides are working on reducing the 25% tariff on vehicles and are considering abolishing levies on spirits, aircraft, and parts.

The EU is also prepared to reduce its $217.8 billion trade surplus by purchasing more US weapons and liquefied natural gas.

David Henig of the European Centre for International Political Economy said the EU faced a harder task despite its larger size.

“Considering the things Trump has said about the EU, a 10% tariff would probably be better than some were expecting, but this is still a blow to a bloc that started the process thinking they could remove all Trump’s tariffs, and that the UK had made a mistake in settling,” Henig told FT.

The bloc has paused retaliation during talks, but $23.1 billion in counter-tariffs on annual US exports are scheduled to take effect July 14.

The commission is preparing a $104.5 billion additional tariff package, including aircraft, alcohol and food, which would require member state approval.

The Post has sought comment from the White House and the European Commission.


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