EU representatives are in a difficult position. They are willing to accept a universal 10% tariff on most goods exported to the United States. However, there is a catch. EU leaders are pushing hard for lower tariffs and exemptions for several sectors.

European authorities are seeking to persuade Washington to reduce tariffs on pharmaceuticals, alcohol, semiconductors, and commercial aircraft as part of any trade agreement.

In addition, European negotiators are demanding quotas and exemptions to lower Washington’s 25% tariff on cars and auto parts, as well as its sky-high 50% tariff on steel and aluminum.

Officials at the European Commission, which handles trade policy, argue that the potential agreement would favor the United States to some extent. “We are fully and deeply engaged in negotiations — a negotiated, mutually beneficial solution remains our preferred outcome,” European leaders noted in their report.

The EU now hopes to strike a trade deal with Trump before a crucial July 9 deadline, after which tariffs on nearly all European exports to the US are set to soar to 50%.