The U.S. and European Union are nearing a trade agreement that would establish a 15% baseline tariff on EU goods imported into the United States, according to multiple diplomatic sources. The deal, if finalized, would stabilize existing tariffs and mitigate the risk of a full-scale trade war, particularly after years of escalating tensions under previous administrations. The agreement has advanced to a critical phase, with EU diplomats confirming that negotiators have narrowed the scope to a framework centered on the 15% tariff, alongside limited exemptions. The 15% tariff would impact billions of euros in annual EU exports, including automotive parts and consumer electronics. The 15% tariff, while significant, offers a structured path to stabilize trade relations ahead of potential disruptions from U.S. elections or shifts in EU policy priorities.

Source: The Irish Times July 24, 2025 14:21 UTC