Transatlantic Trade Talks: EU's Path to U.S. Deal

The European Commission and EU member states are negotiating a trade solution with the U.S. amidst potential tariffs on EU goods. Counter-tariffs worth €93 billion were approved, but both parties aim to avoid them. A potential trade deal could mirror the U.S.-Japan framework, reducing certain tariffs.

The European Commission has announced that a trade agreement with the United States is nearly achievable, even as the EU voted to approve counter-tariffs worth €93 billion on U.S. goods should discussions fail. The Commission emphasized its priority of negotiating a deal to avoid the 30% tariffs threatened by U.S. President Donald Trump, set for an August 1 imposition.

In a show of readiness, the EU has prepared two lists of countermeasures, marking tariffs of €21 billion and €72 billion, and rolled them into one proposal. This was submitted to EU member states for approval and was confirmed to have passed overwhelmingly. The countermeasures, if enacted, would take effect in stages starting August 7, with certain tariffs postponed until December 1.

European and U.S. diplomats hint that the two might be moving toward a trade agreement, potentially adopting a 15% tariff on EU products, akin to a deal between Washington and Tokyo. However, Trump's authority is required for any final decision, and his trade adviser, Peter Navarro, advised skepticism of the EU's report.

(With inputs from agencies.)