According to three sources familiar with the negotiations, US President Donald Trump has temporarily suspended the implementation of an additional 10% mirror tariff on imports from the EU. This tariff was to be applied on top of the existing 10% base tariff on imports from most countries worldwide, introduced by the White House on April 9.

EU representatives described this unexpected move as an escalation of the transatlantic dispute ahead of the July 9 deadline set for reaching an agreement between the two trade blocs.

European officials had hoped until the last moment that negotiations with the US would maintain tariffs at the base rate. It is currently unclear whether the new 17% tariffs on food products will be applied in addition to previously announced tariffs or instead of them.

Trump demands that Brussels grant American companies broad regulatory exemptions and reduce the EU’s positive trade balance with the US. However, European officials have rejected these proposals from Washington.

The main focus of the negotiations is currently on exemptions. One EU representative said that Brussels is seeking tariff exemptions for certain goods, including aircraft parts and alcoholic beverages.

According to him, the parties are working on a draft agreement in principle spanning five pages, but so far the agreed portion of the document remains minimal.

On Thursday, July 3, European Commission President Ursula von der Leyen expressed hope for reaching a framework agreement that would allow the sides to continue negotiations toward a final deal. However, Washington insists on concluding binding agreements by the deadline set by Trump.

EU Trade Commissioner Maroš Šefčovič was informed about the intent to impose 17% tariffs on agricultural products during meetings in Washington on Thursday. On Friday, this information was shared with ambassadors of the 27 EU member states.

The publication noted that last year, the volume of EU agri-food exports to the US, including wine, amounted to €48 billion.

Šefčovič has repeatedly stated that making changes to EU regulations to satisfy US demands is a red line. At the same time, the EU is moving toward deregulation, including in environmental legislation.

The Financial Times noted that EU countries are split between those willing to accept some tariff increases in exchange for a period of predictability and those who advocate for a mirror response to pressure the US into reaching a compromise.

German Chancellor Friedrich Merz is urging the European Commission, responsible for trade policy, to agree as soon as possible. He seeks exemptions from Trump’s sectoral tariffs of 25% on cars and 50% on steel. Germany is the largest and most export-dependent economy in the EU.

At the same time, according to two informed sources, several ambassadors during Friday’s meeting called for a tougher response from Brussels to Washington’s actions.

As part of preparations for a possible response to American tariffs on European goods,

The European Commission is also preparing an additional package of measures worth €95 billion, which will include aviation products and foodstuffs.

"The EU position has been clear from the outset: we favour a negotiated solution with the US, and this remains our priority . . . At the same time, we are preparing for the possibility that no satisfactory agreement is reached,” said a European Commission spokesperson.

Two European diplomats reported that the US has outlined three scenarios ahead of the July 9 deadline:

On April 2, US President Donald Trump imposed tariffs on imports into the US from over 180 countries. The rates varied from 10% to 49% depending on the country.

Specifically, the US introduced a 25% tariff on steel and aluminum imports from the EU. In response, the EU imposed import tariffs on American goods worth €21 billion.

However, on April 9, Trump suspended these tariffs for 90 days and set a temporary 10% rate on all imports from other countries. During this period, the US aimed to negotiate individual trade agreements with other countries.

The tariff on imports from the EU to the US was reduced to 10% starting April 9, while Brussels temporarily suspended its own 25% tariffs for three months and began negotiations with Washington.

Recently, Trump made it clear that countries that fail to reach bilateral trade agreements by July 9 should not expect a delay in the imposition of American tariffs.

During the negotiations, the EU agreed to approve a universal tariff on exports to the US. However, in exchange, Brussels demands a reduction in tariffs on products from several strategic sectors.