Analyst: EU Will Have to Accept 10% Tariff

On July 13th, Mathieu Savary, the European Chief Strategist of BCA RESEARCH, stated that Trump's strategy involves making outrageous demands. These demands will fail, after which he will make a last-minute push for certain concessions and then secure a trade deal. "We recall the framework that Trump had during his first presidential term, and this is what is currently taking place. What is being said now is not significant; what matters is the final outcome. The expectation is that the EU will ultimately 'be forced to accept a 10% tariff, but this is something that the EU can actually manage to bear.'" Prior to this, US President Trump announced a 30% tariff on EU goods starting from August 1st. Three EU officials asserted that Trump's threat to impose a 30% tariff on EU goods starting from August 1st was a negotiation tactic.