US President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the EU. US 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 US.

EU negotiators are still pressing for the rate to be lower than10%, 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 US started drawing revenues from its global tariffs. One official was quoted saying the 10% was a sticky issue.

“We are pressing them but now they are getting revenues," the official said.

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.

--Reuters--