The European Union and the US are progressing toward an agreement that would set a 15% tariff for most products, according to diplomats briefed on the negotiations. That, combined with Japan’s trade agreement with the US, sent stocks climbing Wednesday.
Both sides in the EU-US talks accelerated discussions over the past weeks to avoid a full-blown trade war sparked by Donald Trump’s barrage of tariffs against partners across the world. Negotiators were nearing an agreement two weeks ago, but the negotiations stalled when Trump issued a new threat, this time a 30% levy against the bloc if no deal is reached by Aug. 1.
European member states could be ready to accept a 15% tariff and EU officials are pushing to have that cover sectors including cars. Steel and aluminum imports above a certain quota would face a 50% duty. But while the EU is optimistic a deal can be reached, it remains cautious since any final agreement needs approval from the mercurial US president. Trump, 79, has retreated on numerous threats over the past five months. But if no deal is reached in time and he follows through on this one, the EU said it’s prepared to strike back hard.（Bloomberg)