An EU spokesperson stated on 24/7 that a trade agreement between the bloc and the US is "still within reach". "Our objective is to reach a result with the US," the spokesperson said.

However, in parallel with the negotiations, the European Commission (EC) is also advancing a retaliatory plan in case the two sides cannot find common ground. On 24/7, EU member states voted to approve this plan, combining two previously proposed packages – tariffs on 21 billion euros and 72 billion euros worth of US goods – into a single list.

Reuters, citing sources close to the matter, reported that the tariffs would be up to 30%, similar to the tariffs the US will impose on the EU from 1/8. Most countries agreed with the retaliatory measures.

The first package of retaliatory tariffs will take effect from 7/8, except for tariffs on soybeans and almonds, which will be delayed until 1/12. The second package is divided into two phases, applied from 7/9 and early February of the following year.

European Commission (EC) President Ursula von der Leyen. Photo: Reuters

European Commission (EC) President Ursula von der Leyen. Photo: Reuters

The EU has repeatedly delayed imposing retaliatory tariffs on the US in order to negotiate, even though the plan was approved in April. The latest postponement was announced on 13/7. US tariffs currently affect 380 billion euros (420 billion USD) of European exports, equivalent to about 70% of the region's exports.

Reuters sources said the US and EU are nearing a trade agreement similar to the one with Japan. The new tariff rate would be 15% on all European goods. However, neither side has made any statement about this.

In a joint press conference in Paris, French Finance Minister Eric Lombard and Italian Industry Minister Adolfo Urso said they were not aware of any draft agreement. Urso added that he would only give an assessment when a concrete agreement is reached.

There is currently little information about what the EU will propose to the US to reach an agreement. An EU diplomat said the bloc is not considering an investment commitment to the US, as Japan has done. Another source said that Europe could reduce some import tariffs into the bloc. Import tariffs on cars into the region are currently 10%.

In the draft agreement, a 15% tariff could be applied to EU cars and pharmaceuticals entering the US. In addition, there may be exceptions for products such as aircraft, wood, some medicines and agricultural products, meaning these items will not be subject to tariffs.

Ha Thu (Reuters)