The United States has proposed to the European Union an agreement that would keep duties at 10% for all products they export, with the branches of aircraft and alcoholic beverages being excluded, according to an EU diplomat and a national official.

The Trump government said on Sunday that it will postpone the deadline for the return of duties on August 1st. The duties will then return to the contributors announced on April 2 for countries that will not be able to achieve new trade agreements with the US.

Trump began on Monday to issue letters, starting from South Korea and Japan, which will face both 25% duties from August 1st.

The EU head of trade, Maroš šefčovič, is in contact with the US government following a phone call by US President Donald Trump on Sunday with European Commission President Ursula von der Laen.

The outline of a trade agreement is still largely a moving target, Politico’s sources stressed, with any agreement being subject to whether or not Donald Trump’s wish.

What does the EU ask for

Washington has not given any evidence that it will exclude politically sensitive industries such as cars, steel and aluminum or medicinal products, as the EU requested. However, France, Italy and Ireland would probably be happy with exceptions for alcoholic beverages.

Prior to the decision to relocate the duty date, the EU was still operating on the basis of the old July 8 target and sought to reach an agreement with Washington.

Irish Minister of Commerce Simon Harris, however, said in a statement Monday night that “we can now expect an extension of today’s Status Quo until August 1, to give further time to the EU and the US to reach an agreement on the principle”.

At the same time, Brussels are facing the dilemma whether or not they should accept duties, risking further unpredictable developments by the Trump government.

At a meeting Monday night, which diplomats described in Politico as dramatic, Brussels noted that they had not received guarantees from the US government on whether or not there would be further upheavals for tariffs.

The European Commission declined to comment, adding that “the negotiations continue”.