EU reaches agreement with Trump on tariffs. Base rate set

• According to unofficial hearings from the ongoing trade negotiations in Washington between Brussels and the White House, the European Union will agree to a base tariff of 10 percent on all goods with exceptions and sign a preliminary agreement to that effect.
• In return, EU diplomats hope that the Americans will lower tariffs on key goods for Europe, such as pharmaceuticals, semiconductors, passenger planes and alcohol.
• Although the negotiations are supposed to aim at reaching a political compromise, ambassadors to the European Commission have been asked to convey to their governments a request to prepare for the failure of the talks with Trump and possible "different scenarios".

The first – non-binding – political agreement on tariffs between the United States and the European Union could be signed as early as July 8 , one day before the deadline set by Donald Trump.

The US President threatened that if Brussels does not sign a trade agreement with the White House by July 9, he will restore the 50% tariffs on European steel and aluminum, as well as 25% tariffs on cars and 10% on other goods, which were suspended during the negotiations .

Fragile preliminary agreement. EU gives in and expects the same

According to EU sources from the Politico website, a delegation of EU diplomats led by the Commissioner for Trade and Economic Security and former Slovak diplomat Maroš Šefčovičz, who is currently in Washington, is said to have already reached a preliminary agreement with the Americans.

It talks about a base 10% tariff on all products from Europe. In return, Brussels is pressuring Washington to agree to lower tariffs on goods such as pharmaceuticals, semiconductors, aircraft and alcohol. This was allegedly demanded by German Chancellor Friedrich Merz.

Some EU diplomats, however, believe that American concessions on this issue may be unattainable for the EU. This coming Thursday, July 3, decisive talks on this issue are to be held in Washington with US Trade Representative Jamieson Greer.

Europe is divided. Only some countries are in favor of compromise

The talks across the Atlantic have been said to have divided European politicians, with Germany and Italy said to be more willing to strike a tariff compromise , while countries such as Ireland and France are said to be distancing themselves from it.

If the United States maintains 10 percent tariffs, compensation will have to be paid for goods and products imported from the US. The rate must be the same - 10 percent for 10 percent - said French President Emmanuel Macron after the EU summit on June 26, as quoted by Euronews.

Another EU diplomat told Euronews that the agreement with the US could be deliberately short , to allow both sides to reach broader and more detailed agreements in various sectors. “It is also possible that some sectors will be covered and others will not,” he said.

The European Commission is preparing for every scenario

Commission officials also asked member states' ambassadors to brief their governments on a number of scenarios, including the possibility of an "asymmetric deal" in which the EU would make more concessions than the US because there was no prospect of an agreement, and the option of no EU retaliatory measures.

Recall that the list of retaliatory measures proposed by the Commission on May 8 includes US products worth EUR 95 billion . It was suspended after Trump announced a 90-day truce in the trade dispute with Europe.

Although EU commissioners have a 27-nation mandate to negotiate with the Americans, it has been weakened in recent days.

Romanian MEP from the ultra-conservative AUR party, Gheorghe Piperea, on behalf of a bloc of several right-wing parties, submitted an official motion to dismiss Commission President Ursula von der Leyen and other members of the European Commission.

He claims to have collected enough votes (73 signatures) to initiate the procedure. They are currently being verified and approved by parliament officials.

If Piperea's information is confirmed, the debate on the no-confidence motion could take place on Tuesday, July 8, and the vote on Thursday, July 10, i.e. at the time of closing negotiations with Trump.