Overview

• On July 23, Washington and Tokyo agreed to set tariffs on Japanese imports, including automobiles, at 15%, down from the previously threatened 25%.
• EU diplomats confirmed they can accept a 15% base tariff on most US imports as they consider extending the rate to automotive duties.
• The EU has drafted €93 billion in punitive tariffs on US goods, scheduled to kick in on August 7 if no agreement is ratified by the August 1 deadline.
• A central sticking point remains whether the US will cut its 25% auto tariff to 15% for EU vehicles, a concession not yet secured in talks.
• President Trump’s sign-off by the deadline is essential for any deal, and the US-Japan agreement has triggered domestic backlash that could unseat Japan’s Prime Minister Ishiba.