The EU is moving towards a trade agreement with Washington that will result in a broad 15% tariff on goods from the bloc imported into the US. This will avoid the stricter 30% tariff that was due to come into force on August 1, two EU diplomats said.

The rate, which may also apply to cars, will reflect the framework agreement concluded between the US and Japan.

Officials from the European Commission (EC), which negotiates trade agreements on behalf of the 27 member states, informed EU envoys about the state of negotiations with their American counterparts. However, the final decision on whether to sign the agreement will be made by US President Donald Trump.

Under the main provisions of the potential agreement, the 15% rate could apply to sectors such as automobiles and pharmaceuticals and would not be added to long-standing US tariffs, which average just under 5%.

There may also be concessions for sectors such as aircraft, timber, and certain medicines and agricultural products, which will not be subject to tariffs, the diplomats said.

However, Washington does not seem inclined to reduce its current 50% tariff on steel, they added.

The EC said its main focus is to reach an agreed solution to avoid the looming 30% tariffs. 

At the same time, it plans to submit countermeasures worth €93 billion on US goods for approval by EU members. The vote is expected on July 24, but no measures will be imposed until August 7.

If Trump's 30% tariffs are implemented, EU diplomats have also said that there is broad support among European governments for activating wide-ranging so-called "anti-coercive" measures that would allow the bloc to target US services and other sectors. | BGNES