US and EU close to tariff deal

(Patria) - The United States and the European Union are moving towards an agreement that would fix tariffs on most products at 15%, according to diplomats familiar with the negotiations.

Bloomberg and Reuters report that EU member states are prepared to accept a 15% tariff, and European officials are seeking to include sectors such as the automotive industry in such an agreement.

One diplomat stated that imports of steel and aluminum above certain quotas would still be taxed at a rate of 50%.

Although there is cautious optimism in Brussels that an agreement can be reached, diplomats warn that a final agreement would still need to be approved by US President Donald Trump, whose decisions are difficult to predict.

Negotiations remain volatile, and the term "close" is relative – meaning a deal is not yet in sight, a US administration official stated.

Both sides have intensified negotiations in recent weeks to avoid a full-blown trade war, sparked by a series of tariffs Trump has imposed on partners around the world.

EU and US negotiators were close to an agreement two weeks ago, but talks stalled after the US president threatened Brussels with 30% tariffs on most goods if an agreement was not reached by August 1.

If an agreement is not reached by that deadline and Trump carries out his threat, the EU continues to prepare countermeasures for a no-deal scenario.

In that case, the EU would impose tariffs on US goods worth around 100 billion euros (about 118 billion dollars), with rates corresponding to Trump's threat of 30%.

In addition, the EU is also considering the possibility of activating the Anti-Coercion Instrument (ACI), which would allow for additional measures against US economic pressure.