EU, U.S. On Verge of 15 Percent Tariff Deal
(MENAFN) The European Union and the United States are reportedly on the brink of agreeing to a trade deal that would set tariffs on European products at 15%, according to a media report published Wednesday.
Insiders revealed to media that Brussels and Washington are close to finalizing a tariff agreement mirroring the 15% rate recently agreed upon between the US and Japan.
The sources explained that the EU might accept these reciprocal tariffs as a strategic move to prevent US President Donald Trump from implementing a planned tariff increase to 30%, scheduled for August 1.
Additionally, the deal could see tariffs lifted on specific categories of goods, including aircraft, spirits, and medical devices, the sources noted.
They clarified that the 15% minimum tariff would factor in current levies, prompting the EU to interpret the agreement as a formalization of existing trade terms. For example, automobile tariffs, which currently stand at 27.5%, could be lowered to the new 15% threshold under the deal.
Two sources highlighted that the US-Japan agreement influenced Brussels to accept the higher tariffs to sidestep an escalating trade conflict. However, they warned that the EU remains ready to retaliate if President Trump proceeds with raising tariffs to 30% in August.
They added that the EU is actively preparing a possible retaliation package of tariffs valued at €93 billion ($109 billion), which could reach rates as high as 30%, should negotiations fail by the August deadline.
Meanwhile, President Donald Trump announced the completion of a trade deal with Japan, confirming that the country will pay a 15% tariff on its exports to the US. On his Truth Social platform, Trump described the agreement as "perhaps the biggest deal ever made."
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