The EU and US are nearing a trade agreement involving 15% reciprocal tariffs on imports, averting a potential 30% increase threatened by President Trump. This follows a similar deal with Japan. While some products will be tariff-free (aircraft, spirits, medical devices), the agreement largely maintains existing tariffs, including a reduction for car tariffs from 27.5% to 15%. The EU retains the option to retaliate with its anti-coercion instrument if Trump escalates. News of the potential deal positively impacted the euro and US stocks.

Prepared by Christopher Adams and reviewed by editorial team.