Overview

• Negotiators are closing on a framework that would set a 15% baseline tariff on EU imports, mirroring the recently formalized US-Japan agreement
• The European Commission has prepared €93 billion of retaliatory duties at rates up to 30% to hit US goods if no pact is finalized by August 1
• Discussions include carve-outs for sectors such as aircraft, spirits and medical devices, with EU ambassadors poised to convene during the summer recess
• Reciprocal tariff pacts with Japan, the Philippines and Indonesia are now official, and US‐China talks look likely to extend past an August 12 deadline
• Treasury Secretary Scott Bessent and EU Trade Commissioner Maros Sefcovic have described negotiations as making good progress despite earlier supply-chain strains