EU, US Near Fifteen Percent Tariff Agreement
(MENAFN) The European Union and the United States are reportedly on the verge of finalizing a trade agreement that would implement a 15% tariff rate on European products, according to a stated on Wednesday that discussions between Brussels and Washington are progressing toward an arrangement modeled after a recent pact between the US and Japan.
Citing three individuals familiar with the negotiations, the newspaper explained that the transatlantic partners are nearing consensus on a mutual tariff scheme.
This agreement, they noted, could help preempt a scheduled increase in US import duties to 30%, set to begin on August 1, as proposed by President Donald Trump.
The informants also suggested that both parties might remove duties on select commodities, including aircraft, alcoholic beverages, and medical equipment.
These exemptions could ease tensions and balance trade interests on both sides.
Furthermore, the insiders indicated that the proposed 15% tariff floor would encompass existing duties.
This approach would allow the European Union to consider the deal a means of legitimizing current conditions—especially since automobile tariffs, currently standing at 27.5%, could potentially be lowered to the proposed 15%.
Two of the sources highlighted that the prior US-Japan trade agreement significantly influenced Brussels’ willingness to accept elevated duties, viewing it as a lesser alternative to a full-scale trade conflict.
Nevertheless, they warned that the EU retains the option to retaliate if the Trump administration moves forward with the 30% increase in August.
As a precaution, the bloc is reportedly assembling a possible countermeasure package worth €93 billion (approximately $109 billion), which would impose tariffs of up to 30% in the event that negotiations fail to produce an accord by the August deadline.
President Donald Trump has already declared the completion of the trade deal with Japan, announcing that the Asian country will face a 15% tariff on its exports to the US. In a post on his Truth Social platform, Trump described it as "perhaps the biggest deal ever made."
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