The European Union is reportedly prepared to accept a flat 10% tariff on all exports to the United States in a bid to prevent steeper duties on critical sectors like automobiles, pharmaceuticals and electronics.
The proposal would be pitched to Trump administration officials as a strategic concession and on a temporary basis, according to the German-language business daily Handelsblatt.
“The offer to US counterparts would come only under certain conditions and would not be billed as permanent,” the paper reported, citing senior EU negotiators.
The development comes as President Trump and other world leaders meet in Canada this week for the annual G-7 summit. The gathering is expected to be dominated by escalating Israel-Iran war, as well as ongoing trade disputes.
Trump has already levied a 10% universal tariff on imports from the EU, as well as 25% on steel and automobiles. He has threatened to impose tariffs of up to 50% on all imports from the 27-member bloc.
Last week, Trump warned that the US could soon act unilaterally if progress in trade talks stalls.
“At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it,” the president said.
European officials appear increasingly concerned about the threat of escalating tariffs on high-value goods and are attempting to preempt further economic strain amid ongoing trade tensions.
Accepting a uniform 10% tariff may serve as a way to stabilize transatlantic trade while sparing individual sectors — especially the auto industry — targeted punitive measures.
While details of the proposed conditions were not disclosed, the move signals a shift in Brussels’ approach to trade talks, particularly as the Trump administration has favored aggressive tariff strategies to pressure allies and rivals alike.
European automakers and pharmaceutical companies have been especially vulnerable to such tactics.
The Post has sought comment from the White House and the European Commission.
The potential tariff deal would represent a significant compromise on the EU’s part, which has traditionally pushed for multilateral rules-based trade and lower tariffs.
However, with global trade tensions on the rise and election-year politics complicating negotiations, EU officials appear willing to consider short-term measures to avoid more damaging outcomes.
Reuters noted that no official announcement has been made, and the European Commission has not confirmed the Handelsblatt report. The proposed deal, if pursued, would likely require further negotiation and political approval within both the EU and the United States.
The EU’s willingness to accept a broad-based 10% tariff signals that Brussels may be aiming to trade flexibility for predictability — hoping to insulate key industries from future tariff spikes while keeping the broader relationship with Washington on stable ground.
Although the White House had recently paused some of its harshest tariffs, the administration has sent mixed signals about whether the reprieve, which expires on July 9, will continue.
Treasury Secretary Scott Bessent told Congress that it is “highly likely” the pause would be extended for countries negotiating “in good faith.”
Trump’s trade fight with Europe has been escalating for months. On Feb. 2, he announced plans to impose new tariffs on the EU, prompting urgent meetings among European trade ministers.
The EU responded with proposals to lower its car import tariffs and increase purchases of US liquefied natural gas and military equipment. By early April, Trump had imposed a 25% tariff on all car imports and a 20% tariff on all EU goods, which was later reduced to 10% following negotiations.
In response, the EU suspended its planned retaliatory measures.
European Commission President Ursula von der Leyen warned that if no agreement is reached by the end of the 90-day window, the EU would unleash what she called “trade bazooka measures” targeting US services and redirected Chinese exports.
Tensions flared again in late May when Trump proposed a “straight 50% tariff on the European Union,” only to delay it two days later after a call with von der Leyen.
