On 7/7/2025, Reuters, citing European Union (EU) sources, reported that the bloc would not receive a notice of US import tariffs. Several other sources confirmed the EU was close to a deal with the Trump administration. The agreement could include a 10% tariff exemption on aircraft and components, medical equipment, and spirits from Europe.
According to two other sources, the EU also wants the US to allow its car manufacturers (currently producing and exporting from the US) to import more cars from Europe at a rate lower than the current 25%. This provision would benefit German car manufacturers with large plants in the US.
The US sent the first batch of notices of new import tariffs to 14 countries, effective from 1/8. The EU was not among them.
 |
European Commission (EC) President Ursula von der Leyen. Photo: Reuters |
European Commission (EC) President Ursula von der Leyen. Photo: Reuters
Investors are currently focused on the negotiations between the US and Europe as the 9/7 deadline approaches. If no agreement is reached, goods of EU origin imported into the US could be subject to tariffs of up to 50%.
On 7/7/2025, a European Commission (EC) spokesperson said EC President Ursula von der Leyen and US President Donald Trump had a "good exchange". On CNN, US Treasury Secretary Scott Bessent also confirmed that negotiations with the EU were progressing well.
The EC announced that member states would have to choose between an unbalanced agreement or continue to face uncertainty. They also stressed there is no guarantee the Trump administration won't impose additional tariffs or demand concessions. In recent months, the US president has repeatedly complained that the EU is "difficult to negotiate with".
The EU currently faces import tariffs of 50% on steel and aluminum, 25% on cars and components, and 10% on most other products exported to the US. Washington is also considering additional tariffs on pharmaceuticals and semiconductor products.
The EC said the US-EU relationship is one of the most important trade relationships in the world, accounting for about 30% of total global merchandise trade. In 2024, total trade between the US and the EU was about 1,680 billion euros (1,980 billion USD).
Europe recorded a surplus of 198 billion euros in goods, but a deficit of about 148 billion euros in services. This means the bloc has a trade surplus of about 50 billion euros with the US.
Ha Thu (Reuters)
