EU, US near 15% tariff deal

The EU and US are heading towards a trade deal that would impose 15% tariffs on European goods, Financial Times reported on Wednesday.

Three sources told the newspaper that Brussels and Washington were close to a 15% tariff deal, similar to the one finalized between US and Japan.

The sources said the bloc could accept reciprocal levies to avoid the US President Donald Trump's planned hike to 30% starting Aug. 1.

Both sides could lift tariffs on certain goods, such as aircraft, spirits, and medical devices, they added.

According to the sources, the 15% minimum would include current tariffs, leading the EU to view the deal as a way to formalize the existing arrangements thus, car tariffs, now at 27.5%, could then be reduced to 15%.

Two of the sources also stressed that US-Japan deal pushed Brussels to accept higher tariffs to avoid a trade war but the EU could still hit back if Trump goes ahead with plans to raise them to 30% in August.

They added that the bloc is still preparing a possible €93 billion ($109 billion) package of retaliatory tariffs up to 30% in case a deal is not reached by Aug. 1.

US President Donald Trump announced the completion of a trade agreement with Japan, saying the country would pay a 15% tariff on exports to the US. Sharing the news on his Truth Social account, Trump called it "perhaps the biggest deal ever made."