President Donald Trump is pressing for a 15% to 20% minimum tariff on all European Union imports, escalating pressure on trade negotiations that have already shown signs of stalling, according to a report by the Financial Times citing sources briefed on the talks.
With the self-imposed August 1 deadline less than two weeks away, three individuals familiar with the discussions told the FT that the Trump administration now insists on a reciprocal tariff rate that exceeds 10%, regardless of whether a deal is reached. The U.S. president is reportedly unmoved by the EU's latest offer to reduce automobile tariffs, maintaining plans to keep duties on the car sector at 25%.
The European Union had been seeking a framework similar to the post-Brexit U.K. trade model, which includes a 10% baseline tariff with sector-specific exemptions. However, Trump has publicly expressed frustration with the EU's goods trade surplus-valued at €198 billion ($231 billion)-while EU officials argue the broader economic relationship, including services and investment, is more balanced.
News of Trump's demands sent U.S. markets lower. The Dow Jones Industrial Average fell over 250 points following the reports, reflecting investor concern over escalating transatlantic trade tensions.
