EU heading towards 15% tariff deal with US, EU diplomats say

Reuters via MSN ^ | 07/23/2025 | Philip Blenkinsop

[SeekAndFind]

BRUSSELS (Reuters) -The European Union is heading towards a trade deal with Washington that would result in a broad 15% tariff on EU goods imported into the U.S., avoiding a harsher 30% levy slated to be implemented from August 1, two EU diplomats said on Wednesday.

The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan.

Officials from the European Commission, which negotiates trade deals on behalf of the 27-nation bloc, briefed EU envoys on the state of talks with their U.S. counterparts. U.S. President Donald Trump would ultimately make any final decision on a deal, however.

Under the outlines of the potential deal, the 15% rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing U.S. duties, which average just under 5%.

There could also be concessions for sectors like aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said.

Washington does not, however, appear willing to lower its current 50% tariff on steel, they said.

The Commission said earlier on Wednesday that its primary focus was to achieve a negotiated outcome to avert the threatened 30% tariffs.

At the same time it planned to submit counter-tariffs on 93 billion euros ($109 billion) worth of U.S. goods to EU members for approval. A vote is expected on Thursday, though no measures would be imposed until August 7.

Germany supported the EU readying countermeasures, a government representative said.

If Trump's 30% tariffs are implemented, EU diplomats also said there was broad support among European governments to activate wide-ranging so-called "anti-coercion" measures, which would allow the bloc to target U.S. services and other sectors.

[SeekAndFind]

The EU appears to be following in the footsteps of Japan, whose agreement with the United States is the most significant Trump has struck since launching his tariff offensive in April.

[chuckee]

The Japan deal had seemed to set the mold for the West on tariffs when Japan agreed to the 15% level. EU cannot expect us to penalize Japanese auto imports competitively by providing the EU with the 10% tariff they were insisting on. In the end, they will agree to the same 15% as Japan. Both will onshore more auto production in the US. Looks like Trump is nearing the tariff end game shaping up to be 15% on rich nations, 19% on less advanced nations and special higher tariffs on the Big Cheat, China.

[sinsofsolarempirefan]

The UK now has preferential trade status compared to all its rivals as an import source for the US.

Is Trump working for Britain?

[MinorityRepublican]

The UK now has preferential trade status compared to all its rivals as an import source for the US.

Is Trump working for Britain?

The UK got out of the EU. Gives them an incentive to keep it that way.