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The European Union and the United States are nearing a trade agreement that would introduce 15 per cent tariffs on European imports, mirroring a deal struck earlier this week between US President Donald Trump and Japan, the Financial Times reported on Wednesday.
While negotiations continue, the EU is also preparing a countermeasure, a potential 93 billion euro ($109 billion) package of retaliatory tariffs with rates reaching up to 30 per cent should talks fail to produce a deal before the August 1 deadline, the report said.
Neither the White House nor a European Union spokesperson responded to Reuters’ requests for comment. Reuters also said it could not independently confirm the FT report.
Earlier on Wednesday, the European Commission reiterated that its priority remains finding a negotiated settlement with Washington to avoid the 30 per cent tariffs President Trump has threatened to impose on EU goods beginning August 1.
In 2024, US imports of vehicles and auto parts from Japan exceeded $55 billion, while the figure from the EU stood at 47.3 billion euros ($55.45 billion). By contrast, US-made cars have a limited share in both the EU and Japanese markets.