EU-US Near Trade Deal, Tariff Threat Eases

The European Union and United States are close to finalizing a trade deal that would apply a 15% tariff on most EU exports to the U.S., closely resembling a recent U.S.-Japan agreement. President Trump has the final decision, and the arrangement may exempt sectors such as aircraft, lumber, certain medicines, and agricultural products. If a deal is not reached by August 1, the EU is prepared to implement up to €93 billion in retaliatory tariffs, maintaining strong member state support for anti-coercion measures. This progress is viewed by economists as likely to prevent the far higher 30–50% tariffs previously threatened. Despite optimism, both parties remain cautious as negotiations continue. The EU reiterates a preference for a negotiated solution over escalating the dispute.