Financial Times: US and EU Nearing 15% Tariff Agreement
According to ChainCatcher, citing the Financial Times as reported by Jintou, the European Union and the United States are on the verge of reaching a trade agreement that will impose a 15% tariff on European imports, similar to the deal President Trump reached with Japan earlier this week.
Three sources familiar with the matter stated that Brussels may agree to what is being called a reciprocal tariff in order to avoid the threat from the U.S. President to raise tariffs to 30% starting August 1. The sources also mentioned that both sides will exempt certain products from tariffs, including aircraft, spirits, and medical equipment.
The sources indicated that the 15% minimum tariff will include existing tariffs, and Brussels views the agreement as essentially consolidating the current situation. The current 27.5% tariff on automobiles is expected to be reduced to 15%.
The sources added that the EU will continue to prepare a retaliatory tariff plan that could reach as much as 93 billion euros, with a maximum rate of 30%, in case an agreement cannot be reached before August 1.
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