Reuters was out earlier with a report saying that EU officials
were increasingly resigned to the idea that US 10% baseline tariffs can’t be
negotiated away.

The report cites five
sources and it goes against the public stance of the EU. The thinking in some sectors is that they would rather have the certainty of 10% and adjust rather than deal with protracted uncertainty. There is also the sense that the US is dug in on its stance.

One particularly-difficult casualty could be the auto industry, which wouldn’t be competitive at 10%.

If the EU folds rather than fighting and retaliating, it will be difficult for other countries to resist a 10% rate.