In a significant development in transatlantic trade relations, the United States has formally offered the European Union a trade deal that would establish a 10 percent baseline tariff on all EU goods. However, the proposal comes with significant caveats, leaving the future of the trade relationship uncertain as a new August 1, 2025, deadline looms.
The offer, confirmed by EU diplomats, is part of ongoing negotiations to avert the imposition of much steeper "reciprocal" tariffs threatened by the Trump administration. While a 10 percent tariff would be a considerable increase from previous levels, the offer does include potential exemptions for certain sensitive sectors, reportedly including aircraft and spirits. This could be welcome news for countries like France, Italy, and Ireland.
Source: Forexlive
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