EU says trade deal with US 'within reach' as Trump’s tariff deadline looms

The European Union believes it is close to securing a trade agreement with the United States, just days before the 1 August deadline set by President Donald Trump to impose sweeping 30% tariffs on EU imports.

Negotiations have intensified, with EU officials indicating the US has floated a compromise proposal involving a broad 15% tariff on most European goods. While the European Commission declined to comment on specifics, a spokesperson confirmed that talks are ongoing and focused on securing a deal to protect European consumers and businesses.

President Trump has linked tariff withdrawal to the EU opening its markets to American businesses. US Treasury Secretary Scott Bessent said discussions were making good progress, though the White House emphasized that only the president’s word would confirm any deal.

Failure to reach an agreement would trigger automatic EU countermeasures worth €93 billion, including tariffs on US goods such as bourbon, cars, aircraft parts, and chemicals. These would come into effect on 7 August.

The European Central Bank kept interest rates steady at 2% and warned that ongoing trade uncertainty could hinder economic stability. ECB President Christine Lagarde called for swift resolution, while France’s Bernard Arnault of LVMH urged diplomacy over trade conflict.

The EU has so far avoided retaliatory action but confirmed it is prepared to act if talks collapse. In a parallel move, some EU leaders have discussed activating a powerful anti-coercion tool targeting US services and intellectual property, though it currently lacks broad support.

As negotiations continue, both sides are under pressure to finalize an agreement that avoids a major transatlantic trade clash.