The European Union is offering to accept a 10% tariff across all of its exports to the United States in an effort to prevent higher duties on cars, drugs, and electronics, according to a Monday report from German newspaper Handelsblatt.
The proposal, which cites high-ranking EU negotiators, would come with certain conditions and would not be presented as a permanent arrangement. The EU is also prepared to reduce its tariffs on American-made vehicles and potentially modify technical or legal barriers to make it easier for U.S. car manufacturers to sell their products in European markets.
In addition, the EU has offered to completely ban purchases of Russian natural gas, a move that could create additional demand for U.S. gas producers.
According to Handelsblatt, the EU’s negotiating position is partly influenced by the understanding that U.S. President Donald Trump will need tariff revenues to fund his planned tax cuts.
Despite these concessions, U.S. negotiators have not yet agreed to limit their import duties on European cars to 10%, the newspaper added.
Source: Investing