Tariff Deal Aims to Prevent Harsh Measures
The potential agreement would see both sides impose 15% tariffs while waiving duties on specific goods such as aircraft, spirits, and medical devices. The talks are being driven by the urgency to avoid the 30% tariffs that former US President Donald Trump has warned could be applied to EU exports if no deal is reached by August 1.

The European Commission has confirmed that it is focusing on a negotiated solution. However, it is simultaneously preparing a 93 billion euro ($109 billion) package of retaliatory tariffs, which could go as high as 30%, in case the negotiations fall through.

Automotive Trade at the Center of Discussions
Trade in automotive goods is a key point of concern. In 2024, the US imported over $55 billion worth of vehicles and parts from Japan. Imports from the EU were similarly high, totaling 47.3 billion euros ($55.45 billion). In contrast, American car sales in Europe and Japan are significantly lower.

This imbalance has long been a sticking point in trade discussions. By securing a 15% tariff deal, both sides hope to ease tensions, avoid an all-out trade war, and stabilize critical industries ahead of the August deadline.