Overview

• US and EU negotiators are on the cusp of a compromise to set mutual tariffs at 15 percent, averting the 30 percent US duty scheduled for August 1.
• Spanish Prime Minister Pedro Sánchez has proposed channeling incoming reciprocal-tariff revenues into an EU-wide aid fund to support sectors harmed by rising duties.
• The European Commission expects to ratify the long-delayed EU-Mercosur free trade agreement this year under the Danish presidency, reinforcing the rules-based trading system.
• Markets have treated a 15 percent mutual tariff as a relief compared with earlier threats of steeper duties; Washington has already applied similar terms with Japan, the UK, Vietnam and other partners.
• Analysts estimate that prolonged hostilities could slash €22 billion from Spanish exports; the EU as a whole could lose up to €380 billion, underscoring the stakes for compromise.