EU Reportedly Weighs 10% US Tariffs To Avoid Higher Duties On Cars, Drugs, Electronics

The European Union is reportedly considering accepting a flat 10% tariff on all its exports to the U.S. to avoid higher levies on cars, pharmaceuticals, and electronics, according to multiple reports citing senior EU officials and the German newspaper Handelsblatt. This offer is conditional and not intended as a permanent arrangement, with the EU also willing to reduce tariffs on American vehicles and ease regulatory barriers to facilitate U.S. car sales in Europe. Additionally, the EU has proposed a blanket ban on purchasing Russian energy, potentially benefiting U.S. energy companies amid increased demand. These developments come as President Trump has issued ultimatums to trade partners, signaling that his administration may soon send letters setting unilateral tariff rates, although Treasury Secretary Scott Bessent indicated the possibility of extending a tariff pause for countries negotiating in good faith. The U.S. and EU negotiations are complicated by Trump's recent tariff measures and ongoing global tensions, including the Middle East conflict and upcoming G-7 discussions. While the EU's offer aims to ease trade tensions, U.S. negotiators have yet to agree to limit import duties on European cars to 10%.