European officials increasingly believe that the establishment of a base rate of 10% for «reciprocal» duties in the US-EU trade agreement is becoming inevitable. EU negotiators insist on lowering the tariff below 10%, but this is becoming more difficult to achieve due to US revenues from global tariffs. One of the EU representatives noted that «the 10% rate is a painful topic,» and the changes are more difficult to implement. Another source confirmed the lack of formal agreement on 10%, but acknowledged that it would be difficult to change this level. The EU has previously said it would not agree to a double-digit rate, as has the UK, which has maintained 10% duties on exports and reduced higher tariffs on steel and automobiles. Trump imposed duties of 50% on steel and aluminum and 25% on cars. The EU aims to conclude an agreement before July 9, when mutual duties may rise from 10% to 50%. With a trade surplus of $236 billion with the United States in 2024, the EU will be in a vulnerable position compared to the UK with a trade deficit.
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