MNI: EU Hopes For Mini-Deals With US Despite Tariff Threat

The European Union is considering turning its attention to securing a series of mini-trade deals with the U.S., including exemptions for cars, pharma and food, which would bypass a 30% tariff threatened by President Donald Trump while talks for a more comprehensive deal continue past the Aug 1 deadline, EU officials told MNI.

The exemptions would come in return for the EU’s granting some increased market access to the U.S. in areas such as agriculture/food, public procurement, digital and technical standards, officials said, adding that maximalist threats by followed by selective concessions appear to be a typical Trump pattern.

Talks could continue beyond Aug 1 on the details of a more comprehensive agreement, including more EU redline areas, such as non-tariff barriers, digital and public procurement.  Such an approach would be strongly supported by the EU's biggest economy Germany, which fears an almost existential threat to its industrial sector from 30% U.S. tariff warnings, as well as by the Netherlands and Ireland.

France, Spain, Sweden and Austria on the other hand want a tougher response, official said, with EU Trade Commissioner Maros Sefcovic saying that support for retaliation at Monday's trade ministers' meeting was the strongest he has ever seen. (See MNI: EU-US Deal Hinges On Rule Exemptions Vs Market Access)

EU officials said that U.S. Treasury Secretary Scott Bessent as well as senior U.S. trade officials had been privately supportive of an EU deal until Trump threatened more tariff action. An agreement in principle had been “very very close” but issues remained on sectors subject to Section 232 orders by Trump, such as steel, aluminium, and cars.