The European Union is willing to accept a trade arrangement with the US that includes a 10% universal tariff on many of the bloc's exports, but wants the US to commit to lower rates than that on key sectors such as pharmaceuticals, alcohol, semiconductors and commercial aircraft.
The EU is also pushing the US for quotas and exemptions to effectively lower Washington's 25% tariff on automobiles and car parts as well as its 50% tariff on steel and aluminum, according to people familiar with the matter. The European Commission, which handles trade matters for the EU, views this arrangement as slightly favoring the US but still something it could agree to, said the people, who spoke on the condition of anonymity. The EU has until July 9 to clinch an arrangement with Donald Trump before tariffs on nearly all of its exports to the US jump to 50%.
A commission spokesperson declined to comment on the status of the negotiations but confirmed that a negotiating team was in Washington and would be joined by the EU's trade chief, Maros Sefcovic, on Wednesday.
"We are fully and deeply engaged in negotiations - a negotiated, mutually beneficial solution remains our preferred outcome," the spokesperson said. "In case a satisfactory outcome is not found, all instruments and options remain on the table."
China is ready to have discussions about trade policies, including tariffs and subsidies, that Washington has identified as obstacles to reforming the World Trade Organization, a senior delegate at China's mission to the WTO said.
China had heard "every word" the US had said at the WTO about its trade practices and is open to discussing tariffs, industrial policy and some benefits it gains from its developing country status, as part of broader conversations on reform ahead of a 2026 ministerial meeting in Cameroon, the delegate said.
Source Name : Economic Times