Trump’s Tariff Letter Looming as EU Races for Trade Deal

President Donald Trump announced a forthcoming letter to the EU within two days outlining tariff details and confirmed a 10% tariff on BRICS nations to uphold U.S. economic standards, emphasizing the rate as “low and fair.”

The EU, locked in urgent trade talks with the U.S., is pursuing a deal to maintain a 10% baseline tariff on its goods, with exemptions for sectors like aircraft and spirits, and possible advantages for EU automakers exporting from U.S. facilities.

Trump’s administration extended the tariff reinstatement deadline to August 1, offering Brussels breathing room, though no assurances protect against further U.S. policy changes. With South Korea and Japan facing 25% tariffs from August 1, the EU grapples with existing 50% tariffs on steel and aluminum, 25% on cars, and 10% on most goods.

EU Trade Chief Maroš Šefčovič and Commission President Ursula von der Leyen are striving for a balanced agreement, but Brussels must choose between an uneven deal or heightened uncertainty. Irish Trade Minister Simon Harris praised the extended timeline, while the European Commission, staying silent, noted ongoing negotiations. Trump’s concurrent visit to a new Florida immigration detention facility highlights his focus on both trade and immigration.