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Trump Locks In 15% Tariffs With Japan as EU Converges on Baseline Deal

The EU has primed a €93 billion counter-tariff package for approval if no deal is reached by August 1.

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European Union flags fly outside the European Commission in Brussels, Belgium November 8, 2023. REUTERS/Yves Herman/File Photo
Stacked containers and cranes are shown at the Port of Los Angeles in Los Angeles, California, U.S., November 22, 2021. REUTERS/Mike Blake/File Photo
President Donald Trump greets people during a reception for Republican members of Congress in the East Room of the White House, Tuesday, July 22, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

Overview

  • The Japan agreement cuts auto and other import tariffs to 15% in exchange for a $550 billion investment pledge and leaves 50% steel and aluminum duties in place.
  • U.S. and EU negotiators are closing in on a comparable pact that would impose a 15% baseline tariff on European imports with carve-outs for sectors such as aircraft, medical devices and spirits.
  • European Commission officials have prepared a single €93 billion counter-tariff package by merging an approved €21 billion list with a proposed €72 billion list for swift approval.
  • EU diplomats say member states are poised to activate the bloc’s Anti-Coercion Instrument as a deterrent if talks fail to deliver a deal by the August 1 deadline.
  • The American Automotive Policy Council, representing Ford, GM and Stellantis, warned that lower Japanese tariffs undermine U.S. automakers and risk domestic job losses.