US-EU Tariff Talks Reach Tentative Agreement
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.
