EU and US Nearing Trade Deal to Avert Tariff Escalation

Brussels and Washington are on the verge of finalizing a trade agreement that WOULD see EU negotiators accept a 15% levy to prevent former President Trump's threatened 30% tariff hike, set to take effect August 1. The deal would eliminate fees on specific products such as airplane components, spirits, and healthcare devices.

European exporters have been grappling with an additional 10% surcharge on U.S.-bound shipments since April, atop standard tariffs averaging 4.8%. A flat 15% rate would significantly reduce auto duties from 27.5% to 15%.

Trump recently reiterated his hardline stance on Truth Social, declaring he would "ONLY LOWER TARIFFS IF A COUNTRY AGREES TO OPEN ITS MARKET," while touting Japan's newly accessible markets as a win for U.S. businesses.

The European Commission maintains its €93 billion retaliation package in reserve, combining previous €21 billion and €72 billion proposals into a single retaliatory measure. Officials emphasize readiness to deploy countermeasures should negotiations falter.