US EU Deal Update 7-24-25

It appears the EU is moving closer to a trade deal with the US that would involve a 15% tariff on most goods. This tariff rate would mirror a recent agreement between the US and Japan. While the EU is ready to accept this compromise, they are also preparing retaliatory measures if a deal isn't reached with the US by an August 1 deadline, according to EU diplomats. Here's a more detailed breakdown:

15% Tariff: The EU is nearing a deal with the US that would establish a 15% tariff on most goods traded between them. 

Retaliation if no deal: If a deal isn't reached by August 1, the EU is prepared to impose retaliatory tariffs, potentially exceeding $100 billion.  

Mirroring Japan deal: The 15% tariff rate is designed to align with the recent US-Japan trade agreement. 

Potential Exemptions: Some products like aircraft and medical devices may be excluded from the tariff agreement. 

Existing tariffs:

It's worth noting that the US is already imposing a 10% tariff on some EU goods, on top of existing levies. 

Is the EU ready to drop tariffs on US to 15%.

The European Union (EU) is reportedly nearing a trade agreement with the United States that could involve accepting a 15% tariff on most European imports into the US

This potential agreement comes as President Trump has threatened to impose 30% tariffs on a wider range of EU goods starting August 1st. 

Key elements of the potential deal

15% baseline tariff: The proposed agreement includes a baseline tariff of 15% on a broad range of EU goods imported into the US, according to Reuters. This rate would be applied on top of the current duties, which average around 4.8%.

Sector-specific exemptions: The deal may include exemptions or concessions for certain sectors, such as aircraft, spirits, medical devices, some medicines, and agricultural products, which would not face the 15% tariff.

Similar to US-Japan deal: This potential agreement is similar to a recent deal struck by the US with Japan, which also involves a 15% tariff on imported goods.

EU preparing countermeasures: In parallel with negotiations, the EU is preparing a package of retaliatory tariffs worth €93 billion ($109 billion) in the event that a deal isn't reached and the US implements the higher tariffs. 

Uncertainty remains

While EU diplomats are reportedly optimistic about reaching a deal, the final decision rests with President Trump, whose stance remains difficult to predict. Negotiations are still ongoing and are described as fluid. Some officials remain hesitant, warning against being overly optimistic about a swift resolution. 

Potential impacts

If a deal is reached at the 15% tariff rate, it would be significantly lower than the 30% rate threatened by Trump. This could help to avoid a full-scale trade war, which could heavily impact businesses and economies on both sides of the Atlantic. However, even a 15% tariff would be a considerable increase compared to the previous rates. 

https://www.google.com/search?q=is+the+eu+ready+to+drop+tariffs+on+US+to+15%

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