Analyst: EU will have to accept a 10% tariff

On July 13, BCA RESEARCH's Chief European Strategist Mathieu Savary said that Trump's strategy is to make outrageous demands, then let those demands fall by the wayside, and then make another effort to win some last-minute concessions before reaching a trade agreement.

"We remember a framework from Trump's first term as president, and that's what's happening now. What is said now doesn't matter; what matters is where we will land. Expect the EU to eventually "have to accept a 10% tariff, but that's something the EU can actually cope with."

Previously, US President Trump announced a 30% tariff on EU goods starting August 1. Three EU officials said that Trump's threat to impose a 30% tariff on EU goods starting August 1 is a negotiating tactic.