EU and U.S. near preliminary trade deal

In a push to head off looming tariffs, the European Union and the United States are nearing agreement on a preliminary trade framework, with both sides reportedly accepting a 10% baseline reciprocal tariff. This tentative deal aligns with U.S. President Trump’s threat to reinstate higher tariffs after a July 9 cutoff date.

According to Reuters, the U.S. expects a flat 10% tariff on most EU goods unless further specific agreements are struck. Negotiators are exploring exemptions for critical industries—like cars, aircraft, medical devices, and spirits—in exchange for broader concessions. Meanwhile, Bloomberg reports that a U.S. court challenge to some tariffs has strengthened the EU’s negotiating position.

The July 9 deadline is key because without a deal, temporary 10% tariffs on EU goods risk doubling or rising even higher. EU Commission President Ursula von der Leyen described the talks as a “sorry saga,” yet says unresolved options remain on the table.