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Trade agreement imminent: Brussels ready to accept reciprocal tariffs to avert doubling of tariffs on European imports into the United States

The European Union and the United States are moving closer to a new trade agreement that could impose 15% tariffs on European imports. According to the Financial Times, the agreement would follow the model already adopted by US President Donald Trump with regard to Japan.

The aim is to avoid the squeeze announced by the White House: President Trump has threatened to increase tariffs on European goods by up to 30% from 1 August if Brussels does not accept a “reciprocal tariff” regime. According to three sources cited by the financial newspaper, the EU would be prepared to accept the compromise in order to protect European exports, particularly in the automotive, industrial machinery and consumer goods sectors.

The agreement would come at a time of heightened trade tensions between Washington and Brussels, with the new US president determined to renegotiate all major multilateral and bilateral agreements signed over the past two decades.

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