EU Pushes for Concessions as U.S. Tariff Deadline Looms

The EU is set to hold talks with a Chinese delegation in Brussels this week over Beijing’s new restrictions on rare-earth exports, as Europe moves to safeguard its industrial base. A European Commission spokesperson said Chinese officials will visit on Thursday, following a preparatory video call on Monday. Earlier this month, China’s commerce ministry tightened export controls on rare earth minerals, requiring government approval for certain materials and products made with specific technologies. European Commission President Ursula von der Leyen said the EU will accelerate efforts to secure alternative supplies and pursue mineral deals with partners such as Ukraine to reduce dependence on China.

The EU and the U.S. are reportedly nearing a trade agreement that would impose a 15% tariff on most imports, including potentially cars and pharmaceuticals, Bloomberg News reported, citing diplomats. The proposed rate mirrors a similar deal the U.S. reached with Japan. While EU Commission officials briefed member states on the negotiations, any final decision would rest with U.S. President Donald Trump. The 15% tariff would not be added to existing U.S. duties, which average just under 5%. Certain sectors, such as the aircraft, lumber, certain medicines, and agricultural goods, may be exempt. At the same time, the EU is preparing a counter-tariff package targeting EUR 93 billion worth of U.S. goods, with a vote expected from its members on Thursday. Any measures would take effect no earlier than August 7. Separately, Trump said the U.S. was in serious trade talks with the EU and would lower tariffs if the bloc opened up to American businesses.

The European Union is open to a trade deal with the U.S. that includes a universal 10% tariff on many EU exports, but seeks lower rates on key sectors like pharmaceuticals, alcohol, semiconductors, and aircraft, Bloomberg News reported. The proposed deal would also address non-tariff barriers, U.S. purchases of EU goods, and broader areas of cooperation. The EU is additionally pushing for quotas and exemptions to reduce the impact of current U.S. tariffs—25% on cars and parts, and 50% on steel and aluminum. While the European Commission sees the potential deal as slightly favoring the U.S., it considers it acceptable. The EU faces a July 9 deadline to finalize an agreement before nearly all of its exports to the U.S. could face a sharp tariff hike to 50%. President Trump has imposed broad tariffs on U.S. trading partners, citing the need to revive domestic manufacturing, fund tax cuts, and counter perceived unfair trade practices.