Brussels negotiators hope that by agreeing to a 10% US tariff on all European Union exports, they can avoid higher tariffs on cars, medicines, and electronics, according to a report in German newspaper Handelsblatt on Monday.

Citing senior EU officials, the paper said the offer to the US would come with conditions and would not be permanent.

President Trump and other heads of state are preparing to gather in Canada this week for the annual G-7 summit. Tensions in the Middle East, following Israel's strike on Iran, are expected to dominate discussions, along with another hot topic: trade.

Trump told reporters last week that he would send letters to trading partners setting unilateral tariff rates.

“At a certain point, we’re just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it,” the president said.

Soon after introducing steep new tariffs that roiled markets, Trump instituted a pause on his most punishing duties that expires July 9. His latest comment, however, only muddies the waters about what could happen next as the deadline approaches.

Earlier last week, Treasury Secretary Scott Bessent told Congress that it is "highly likely" that the tariff pause would be extended for countries that are negotiating with the administration "in good faith."

The diverging signals came as the US made key progress with China, as the nations agreed to a framework and implementation plan to ease tariff and trade tensions.
Trump and other US officials indicated the deal should resolve issues between the two countries on rare earth mineral exports. Trump said the US would impose a total of 55% tariffs on Chinese goods. Yahoo Finance's Ben Werschkul reports, citing a White House official, that Trump arrived at that figure by adding together an array of preexisting duties and not any new tariffs.

Meanwhile last week, a federal appeals court held a decision saying his tariffs can temporarily stay in effect. The US Court of International Trade had blocked their implementation last month, deeming the method used to enact them "unlawful."