CORRECTED-MNI: No US Tariff Exclusion For Aircraft, Spirits

(Corrects tariff on EU steel in third paragraph)

An EU-U.S. trade deal including a 15% baseline tariff for European goods and free access for U.S. exports to the EU could get the go-ahead from President Donald Trump within days, but there is little chance the U.S. will concede mutually free access for sectors like aircraft and spirits, as some media have mooted, EU officials told MNI.

"Trump will not grant free access to the U.S. market for anyone," one source said.

Despite the U.S.-weighted nature of the concessions so far, officials said the EU will have no choice but to accept terms, given the dire consequences of potential tariff escalation for key EU export sectors. The 15% baseline tariff includes cars but not steel. EU steel currently faces a 50% US tariff. 

"I think it will happen before Aug 1," said one official, referring to the U.S.-imposed deadline for a deal.

POSSIBLE COUNTERMEASURES

Still, the European Commission said earlier on Thursday that, while it continues to prioritise a negotiated settlement, it would also continue to prepare possible countermeasures, now worth EUR93 billion, so that it can promptly retaliate if the outcome of talks is unsatisfactory. (See MNI INTERVIEW: Trade Retaliation To Make Job Harder For ECB)

Another source noted that the U.S. side seems to have been adroit in maximising its demands while at the same time avoiding pushing the EU too far and so triggering retaliation. 

Still unresolved sectors include agriculture, where the EU has concerns over food safety standards, and pharmaceuticals, which Trump has made the subject of U.S. national security concerns. Trade Commissioner Maros Sefcovic is currently involved in intensive phone negotiations with his U.S. counterparts, officials said.