Trump demands 15-20% tariff on all EU imports: Report

US President Donald Trump has intensified his tariff demands in ongoing trade negotiations with the European Union, pushing for a minimum rate of 15 percent to 20 per cent on EU imports, the Financial Times reported, citing sources familiar with the talks.

Despite weeks of discussions toward a framework deal, Trump remains unswayed by recent EU offers, including one to reduce car tariffs. He is reportedly willing to keep duties on the auto sector at 25% as initially planned. With an August 1 deadline looming, talks appear to have stalled, and the EU is under pressure to respond.

One U.S. official told the FT that the administration is now considering “reciprocal” tariffs that exceed 10 per cent, even if an agreement is reached, putting added strain on already fragile negotiations.

The EU, which had hoped for a deal mirroring its post-Brexit agreement with the UK (retaining a 10 per cent baseline tariff with some exemptions), is facing internal divisions on how to respond. Some diplomats warned that Trump’s insistence on high, permanent reciprocal duties could force Brussels into retaliation.

“We are not going to settle at 15 per cent,” said an EU diplomat, signalling a tougher stance. Another added, “We don’t want a trade war, but we don’t know if the US will leave us a choice.”

As tensions rise, the European Commission has prepared a series of countermeasures. These include tariffs on EUR 21 billion of US goods, such as chicken and jeans—set to take effect on August 6, along with additional proposals targeting EUR 72 billion in American exports, including Boeing aircraft and bourbon. A third list reportedly includes digital service levies.

Meanwhile, Trump has dismissed concerns about inflation and market instability, pointing instead to USD 50 billion in extra customs revenue collected last quarter. Though U.S. stocks dipped on the news, markets have largely weathered tariff threats since April.

Germany’s Chancellor Friedrich Merz expressed scepticism about reaching a compromise, warning that sector-specific agreements remain unlikely due to the US’s hardening position.

With just days left before Trump’s deadline, the possibility of a trade war between two of the world’s largest economies appears more real than ever.

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