European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the United States and the European Union, five sources familiar with the negotiations said.

President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the EU. U.S. Commerce Secretary Howard Lutnick has ruled out going below a 10% baseline rate for the so-called reciprocal tariffs that cover most goods the EU exports to the U.S.

EU neg are still pressing for the rate to be lower than 10%, said the European sources, who spoke on condition of anonymity because of the sensitivity of the talks.

But one of the sources, an EU official, said negotiating the level down had become harder since the U.S. started drawing revenues from its global tariffs.

"10% is a sticky issue. We are pressing them but now they are getting revenues," said the official.

A second European source said there had been no acceptance by the EU of 10% as the baseline rate at talks, but acknowledged that it would be difficult to change or abolish that baseline.

A spokesperson for the European Commission, the EU's executive body which negotiates trade deals for the 27-nation bloc, did not respond to a Reuters request for comment. The U.S. government also did not immediately comment.

U.S. officials have long worked on the assumption that America will end up with higher tariffs with its trading partners and do not expect to move away from the 10% tariff rate in talks with the EU.

The EU has said publicly it will not settle for a double-digit baseline rate - as did Britain, which agreed a limited trade deal in May that retains 10% tariffs on British exports while cutting higher rates for steel and cars.

Trump has hit Europe with a 50% tariff on steel and aluminium and a 25% levy on cars, and the EU is trying to secure a deal before July 9, when reciprocal tariffs on most other goods could rise from 10% to up to 50%.U.S. Treasury Secretary Scott Bessent told the "Pod Force One" podcast in an interview broadcast Wednesday that Trump’s decision to double tariffs had spurred greater willingness on the part of European leaders to negotiate.

Source: Reuters

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports