The European Union will not be among the countries to receive formal notification from the United States of increased import tariffs, according to multiple EU sources.
However, the bloc remains engaged in sensitive negotiations with the Trump administration over a proposed trade arrangement that would maintain a baseline tariff of 10 percent on most EU goods, while offering partial exemptions for specific sectors.
President Donald Trump has begun sending letters to a range of trading partners — including Japan and Myanmar — informing them that, from 1 August, they will be subject to sharply higher tariffs on goods entering the United States.
Sources in Brussels confirmed on Monday that the European Commission does not expect to receive one of these formal notifications, signalling that talks between Washington and Brussels are continuing. EU Trade Commissioner Maroš Šefčovič, who is leading the negotiations, briefed ambassadors from member states late on Monday. According to officials present, the Commission outlined the current options: accept a limited and potentially unbalanced trade deal, or face renewed uncertainty and the risk of sudden tariff increases.
Three officials familiar with the talks said a possible agreement could involve concessions on a range of goods. Notably, exemptions may be granted for EU exports of aircraft and components, selected medical equipment, and spirits. France, Italy and Ireland — which have significant exports in those sectors — would stand to benefit under such terms.
Two sources also indicated that the EU is exploring a separate arrangement covering automobiles. This could involve a reciprocal scheme whereby EU automakers operating plants in the United States — notably several major German manufacturers — would gain preferential access for importing vehicles back into the EU at reduced tariff rates. Such an agreement would provide an incentive for continued investment by EU firms in US production facilities, while potentially softening the impact of America’s 25 percent tariff on cars.
Despite the potential for a deal, there are no assurances that further demands will not follow. The Commission has warned member states that the Trump administration could still introduce additional measures, including higher tariffs on pharmaceuticals and semiconductors — both of which are critical export sectors for the European economy.
At present, the EU is already subject to US tariffs of 50 percent on steel and aluminium, 25 percent on cars and parts, and 10 percent on a broad array of other goods. These measures remain in place from previous trade disputes and could be further expanded if negotiations fail.
The United States has yet to issue any public confirmation of the terms being discussed. However, White House Press Secretary Karoline Leavitt said on Monday that an executive order would be issued to formalise the extension of the tariff pause to 1 August. Until that announcement, EU negotiators had been working to conclude talks by 8 July.
A Sunday call between President Trump and European Commission President Ursula von der Leyen helped ease immediate tensions, though officials cautioned that the conversation did not yield firm commitments. Šefčovič has remained in contact with Washington since then, aiming to finalise the outlines of a framework agreement before the revised deadline.
According to diplomats briefed on Monday evening, the atmosphere was subdued. One envoy described the situation as “unsettled,” reflecting widespread concern over the lack of predictability in the Trump administration’s trade approach.
The European Commission has refrained from commenting publicly, stating only that negotiations remain ongoing. However, internal assessments suggest the EU may be prepared to accept a limited arrangement as a temporary measure, while continuing to push for a broader and more reciprocal agreement in the longer term.
The emerging proposal falls short of the EU’s original aim of a comprehensive trade accord. Nevertheless, with higher tariffs looming and little guarantee of stability in transatlantic trade relations, Brussels may be compelled to accept the terms on offer.
