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Politico: Trump administration proposes deal with EU with 10% base tariff, exemptions for some sectors
2025-07-08 13:48:00 / BOTA
The Trump administration has submitted a trade deal proposal to the European Union that would impose a flat 10% tariff on all European products, with exceptions for sensitive sectors such as alcoholic beverages, Politico reported, citing a European diplomat and a national official.
Under this proposal, tariffs would remain at this level, except for certain specific industries, while discussions on a final trade agreement continue.
The US administration announced on Sunday that it is postponing the imposition of new tariffs until August 1, leaving time for countries that are in talks with the US for new agreements.
Meanwhile, countries that do not reach an agreement by then will face the tariffs that were scheduled for April 2.
Official notices of the tariffs began being sent out on Monday, including to South Korea and Japan, which risk 25% tariffs if they do not reach an agreement by August 1.
European Trade Commissioner Maroš Šefčovič is in constant communication with the White House, following a phone conversation between President Donald Trump and European Commission President Ursula von der Leyen on Sunday.
According to diplomats, Šefčovič has told EU ambassadors that the Commission is not expected to formally receive any of the new tariff letters. However, the structure of the deal remains unclear and everything will require Trump's final approval.
European officials are concerned that the US has not provided guarantees for exemptions in the most politically sensitive industries such as automobiles, steel, aluminum or pharmaceuticals, a request that the EU has presented as a priority.
However, countries like France, Italy, and Ireland may feel satisfied if the aeronautics and alcoholic beverage sectors are indeed exempted from the new tariffs.
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