And among those conditions, the EU is hoping that by swallowing the flat 10% tariffs that Trump would avert higher US duties on cars, pharmaceuticals, and microelectronics. But for now, the US camp is said to not have agreed to limit auto tariffs against the EU to 10%.
The report adds that if the US waives higher auto tariffs against the EU, then the EU in return will lower its import tariffs on US vehicles and recognise certain US product standards in the future.
Essentially, the EU is looking for some kind of tradeoff here where they will accept the current baseline 10% tariffs in favour of the US reducing tariffs on autos. I don’t know but it is quite difficult to envisage that happening really. There are other sweeteners involved as well but that is the gist of what is the preferred “deal” at the moment.
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