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Investing.com - The European Union is demanding immediate relief from tariffs in some key sectors as part of a trade deal with the United States, Reuters has reported.
However, citing EU diplomats, the news agency said Brussels still anticipates potential unfavorable imbalances in an agreement with Washington.
Tuesday’s report comes as negotiators are facing the looming expiration to a pause to U.S. President Donald Trump’s sweeping "reciprocal" tariffs on July 9. It remains unclear what how Trump will approach the end of the delay to the punishing levies, with White House officials saying that any extensions to the deadline would only be decided by the president.
Against this backdrop, the European Commission, which is negotiating on behalf of the EU, is reportedly set to put forward a range of demands during meetings with the Trump administration this week.
Along with specifically lower tariffs on items like alcohol and medical technology, which currently face a 10% U.S. tariff, the EU is also looking for a deal to cover commercial aircraft, pharmaceuticals and semiconductors, Reuters said. The U.S. has launched a probe into these industries, but has yet to place additional tariffs on them.
Meanwhile, the EU is aiming for U.S. concessions on 25% tariffs slapped on autos and auto parts, as well as a cut to duties on steel and aluminum, Reuters reported. The car levies, in particular, are a "red line" for EU negotiators, the report said.
Finally, the EU would reportedly like to see tariff relief once an initial agreement is reached, rather than having to wait for weeks or months before a final deal is signed.
For its part, the Trump administration has presented a list of their own demands to the EU, but did not include any concessions of its own, Reuters reported, adding that both camps are working to first achieve an agreement in principle and will then clarify the details later.
The EU has become a major target of Trump’s trade-related ire since his return to power earlier this year, with the president arguing that it has ripped off the U.S. through perceived unfair trade practices. Brussels has rebuffed the claims, and vowed to react "firmly" to "unjustified barriers to free and fair trade."