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US-EU Tariff Talks Reach Tentative Agreement

Emiliano Marzoli
Emiliano Marzoli

The United States and the European Union have reached a tentative trade agreement to avert a full-blown trade war as an Aug. 1, 2025, deadline for new US tariffs approaches. US President Donald Trump has indicated a new baseline tariff rate of 15% for most countries, pushing for reciprocal agreements.

This follows a similar deal with Japan, which saw a reduction from a threatened 25% to 15%. While discussions with the EU are ongoing, with both sides expressing optimism for a negotiated outcome, the EU has approved a retaliatory tariff package of up to 30% on €93 billion worth of US goods, to be activated if no agreement is reached. EU countries overwhelmingly supported these countermeasures, which would impact a wide range of US products from soybeans to aircraft.

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Europe Agricultural Machinery Business Sees Dip

The European agricultural machinery industry’s business climate index slightly dropped for the second consecutive month, reaching 0 points in July from +4. This decline primarily affected arable equipment, transportation, and components, unlike previous months when harvesting equipment and tractors saw deterioration.

Market confidence remains low in France, particularly for tractors, arable, and harvesting equipment, with Germany also performing poorly in these segments. Conversely, Spain, Poland, and the UK show strong confidence, leading the European market.

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