EU Faces Higher Tariffs Than UK in US Trade Deal

The EU is approaching a trade agreement with the US. However, the union is likely to face higher tariffs than the UK, which reached an agreement with Donald Trump on tariffs back in May. A specific misstep has been highlighted, according to the Financial Times.

After postponing the deadline for finalizing the trade agreements to August 1, indications suggest that the US is now nearing a completed deal with the EU.

At least a 'framework agreement' has been reached, which would impose 10% tariffs while negotiations continue, according to FT.

Meanwhile, former EU member the UK has already reached an agreement with the US. In May, the new deal was announced, which also includes 10% tariffs and has been criticized as a concession to Trump. However, the UK secured an advantage that the EU seems unlikely to obtain: the ability to sell cars to the US at lower tariffs than most other countries.

"The UK's deal is better than this one. It's surprising given how long we've been negotiating," an EU diplomat involved in the talks told FT.

The Mistake Made

From the EU's perspective, there was hope that the union's size and power would give it an advantage over the White House, but that has not quite been the case. EU leaders believe they should have acted differently from the start.

"It was a mistake not to respond directly to Trump's illegal tariffs in April. It left no room for the EU Commission to reduce the current tariff rates," says Anna Cavazzini, Chair of the European Parliament's Committee on Internal Market and Consumer Protection, to FT.

A trade agreement was supposed to be finalized by July 9, but after the Trump administration postponed the deadline, it is now expected to be completed by the end of the month.