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Cryptopolitan 2025-07-08 11:06:52

US offers EU 10% baseline tariff on goods, with special consideration for jets and spirits

US offers EU 10% baseline tariff on goods, with special consideration for jets and spirits

The US has pitched a new tariff deal to the European Union that would keep a 10% flat rate on all incoming goods, but with exceptions for aircraft and alcoholic spirits, according to a report from Politico. The European Commission wouldn’t offer an official comment. They just said “negotiations were ongoing.” Trump’s White House had announced Sunday that it was pushing back the date for reinstating broader tariffs. That means countries have a little more time to agree to new trade deals before getting slapped with the old April 2 tariff rates. Without new deals, the higher tariffs kick in at the start of August. South Korea and Japan are already on notice . On Monday, Trump sent them over a dozen letters confirming they’ll get hit with 25% tariffs unless things change. But he did claim he was doing it with love, though no one can quite explain exactly what that means. EU tries to avoid trade chaos before August 1 Meanwhile, back in Brussels, the European Commission didn’t get any such letter. Not yet. Maroš Šefčovič, the EU’s trade chief, said after a private call between Trump and Ursula von der Leyen, the Commission wasn’t expecting one. But nothing is locked in. Those same officials said this whole thing is still shifting. Even with this offer, any final deal needs Trump’s personal approval. And right now, the US hasn’t promised any special treatment for cars, pharmaceuticals, steel, or aluminum; all of which the EU wanted carved out. Not everyone in Europe is upset. France, Italy, and Ireland stand to benefit from the exemptions on jets and liquor. Those industries matter more to them than others. But for the rest of the bloc, the terms look one-sided. Karoline Leavitt, Trump’s press secretary, said on Monday after the fact that an executive order would soon make the new August 1 deadline official. But before that statement came out, the EU was still working with the July 8 deadline. They were hoping to lock something in by Wednesday. Simon Harris, Ireland’s trade minister, confirmed on Monday night that “we can now expect an extension of the current status quo until August 1 to give further time for the EU and the US to reach an agreement in principle.” That buys Brussels three more weeks, but not much certainty. During a tense meeting on Monday evening, EU diplomats described the atmosphere as “somber.” There were no promises from Washington about avoiding future tariff flip-flops. And no real guarantees that today’s exceptions won’t vanish tomorrow. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

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