The United States is urging the European Union to make unilateral tariff cuts on American goods and abandon its proposed digital tax, according to sources cited by the Financial Times. These demands are seen as key conditions for progress in ongoing trade negotiations.
Earlier this year, the U.S. imposed a 20% “reciprocal” tariff on the EU. However, the Trump Administration rolled back that rate after markets reacted negatively, fearing a recession. A 10% baseline tariff on imports from all countries remains in place as of July 8, as talks continue.
Despite easing some tariffs, Washington has kept 25% duties on European steel, aluminum, and auto parts. U.S. officials are also threatening to target pharmaceuticals and semiconductors with additional tariffs.
Sources say the U.S. will formally tell EU trade negotiators this week that it expects the EU to reduce tariffs without demanding equivalent concessions. American officials are also pushing for the EU to remove its planned digital tax, which the U.S. views as discriminatory toward its tech firms.
Last month, the EU proposed a mutual agreement to eliminate tariffs on industrial goods. European Commission President Ursula von der Leyen stated, “We have offered zero-for-zero tariffs for industrial goods. Because we’re always ready for a good deal.” She also warned that the EU would respond with countermeasures if necessary.
President Donald Trump has dismissed the EU’s offer. When asked if the proposal was enough to ease U.S. tariffs, he responded, “No, it’s not.”
So far, the U.S. has reached only one post-tariff trade agreement—with the United Kingdom. A breakdown in talks with the EU could hurt both economies and potentially slow global oil demand growth.
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