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European capitals have paved their position in commercial interviews with Donald Trump and insisted that the US immediately dropped its rates on the EU as part of a framework deal before the threatening deadline on July 9.
Handels commissioner Maroš Šefčovič has been instructed to take a more difficult line this week during a trip to Washington, while Brussels tries to remove or at least substantial Trump’s taxes in the long term.
Washington has indicated Brussels that the most likely agreement in the first phase is a phased deal in British style that leaves some rates while conversations continue, according to EU officials.
Ambassadors from the EU Member States asked on Monday for Šefčovič to insist that such a deal, from July 9, reductions in the current 10 percent “reciprocal” rate, according to four people who have been informed about this. They also demand reductions for higher sectoral levies.
In the UK case, American rates for cars and steel have continued a few weeks after the first agreement to allow lower service or tax-free quotas.
The 27 members of the EU have difficulty showing a united front for almost three months of conversations. But chairman of the European Commission Ursula von der Leyen asked leaders at a top Thursday to endorse a more difficult attitude, according to people.
All results remained possible, they said, including a collapse of conversations, which could lead to the US found the rate of 20 percent of April or the level of 50 percent in May.
Another person who was informed about the situation said that the EU was still divided on whether or not to divide, which reduced the stimulus for the US to make a compromise.
The German Chancellor Friedrich Merz called on the top for a fast deal that would lower the rates for cars. But this week the French finance minister said that the deadline should be expanded to get a better agreement.
Since April, EU companies have been subject to rates at € 380 billion in annual trade with the US, equal to around 70 percent of the total.
This includes sectoral levies of 25 percent on cars and their parts and 50 percent on steel and aluminum.
The US is considering expanding to goods, including copper, wood, space parts, pharmaceutical products, chips and critical minerals.
The EU voted for retribution rates at € 21 billion from American exports, but paused them until July 14. The committee draws up a new rate package of € 95 billion.
Šefčovič will have conversations on Thursday with the American trade secretary Howard Lutnick and the American trade representative Jamieson Greer.
They will discuss a “two -page agreement in principle” from the US. This not only includes goods trade, but also “non-tariff barriers”, including digital regulations and food and product standards.
The Financial Times has reported that Washington prioritizes such similarities to prevent them from imposing higher rates, but expects 10 percent to remain in force during further conversations.
“We definitely focus on a positive result,” said Šefčovič. “It’s always a good time when we can go from the … exchange of views to the assignment process,” he said a press conference on Monday.
“We are the two closest allies and I believe that this should also reflect in our trade agreement.”
The National Economic Council Director Kevin Hassett of the White House told Fox News on Monday that various similarities would be announced shortly after US Independence Day on July 4.
Lutnick said he expected to close at least 10 deals before July 9, with extensions or tariff increases for those countries without agreement.
Analysts in Washington said that a president was encouraged by the success of the British deal and would probably bury a partial ceasefire with China.
“The EU seems to approach this as a trade negotiation, which would be a colossal error. From the American perspective, this seems to be about negotiating the conditions of surrender,” said Ted Murphy, a trade lawyer in Sidley in Washington.
Additional reporting by Barbara Moens in Brussels and Aime Williams in Washington
