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EU seeking immediate tariff relief in any US trade deal

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EU wants relief for key sectors such as cars,

pharmaceuticals

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US has set July 9 deadline for deals to be struck

By Julia Payne and Philip Blenkinsop

BRUSSELS, July 1 (Reuters) - The European Union wants

immediate relief from tariffs in key sectors as part of any

trade deal with the United States due by a July 9 deadline, but

the bloc expects even a best-case deal to include a degree of

asymmetry, EU diplomats told Reuters.

The European Commission, which coordinates EU trade policy,

is pushing three key points in Washington this week even as it

accepts the U.S. baseline tariff of 10% as unavoidable.

Both sides are working towards an agreement in principle,

with the final details to be ironed out later. In a short

negotiation document Washington sent last week, the Trump

administration only presented what it expects from Brussels

without any concessions of its own, EU diplomats briefed on the

matter said.

For any deal, Brussels wants in return a reduction of

baseline tariffs to pre-Trump levels or a zero-for-zero tariff

in cases when it existed.

That means specifically lower tariffs for alcoholic

beverages and medical technology, on which the U.S. applies its

10% tariff.

The EU also wants a deal to cover commercial aircraft and

parts, pharmaceuticals and semiconductors, sectors the U.S. is

investigating, but has not yet imposed extra duties on. Trump

said in June the pharma duties would be announced "very soon".

Secondly, the EU wants a concession from U.S. President

Donald Trump on the 25% tariff on cars and car parts, the

diplomats said, and an immediate lowering of U.S. steel and

aluminium import tariffs, which Trump hiked to 50% in June.

One diplomat said cars were a "red line" for the bloc.

However, Brussels and Washington have conflicting goals as Trump

wants to revive U.S. auto production while Brussels wants open

markets for its sector, which is struggling with high energy

costs and competition from China.

Thirdly, the EU wants tariff relief to start as soon as an

initial agreement is reached, rather than waiting weeks or

months for a final accord. A number of EU members said a deal

without this would be unacceptable, the sources said.

EU trade chief Maros Sefcovic and the European Commission

president's head of cabinet Bjoern Seibert head to Washington

later this week hoping to reach a deal.

Trump has suspended higher tariffs until July 9 in order to

strike deals with global trade partners. He has said countries

without deals will see 10% U.S. baseline tariffs on goods jack

up to rates of as much as 50%. For the EU, that rate is 20%,

although Trump has also threatened a 50% duty on all EU imports.

A week before the deadline, the Commission told its 27

member states all outcomes were still possible, from a

successful framework agreement to higher U.S. tariffs covering

additional sectors, the diplomats said.

If its goal of upfront tariff relief fails to materialise,

Brussels will have to choose between accepting significant

imbalances or responding with countermeasures.

Another scenario could be a deadline extension. U.S.

Treasury Secretary Scott Bessent said on Monday any extension

would be Trump's decision, with deals to be wrapped up by

September 1.