Jul 23, 2025 - Economy

U.S., Europe closing in on trade deal with 15% tariffs, reports say

Courtenay Brown

Close-up of Trump in the Oval Office with light blond hair wearing a dark blue suit, white shirt, and red tie, seated against a pale yellow floral patterned background. — President Trump during a meeting with German Chancellor Friedrich Merz in the Oval Office last month. Photo: Anna Moneymaker/Getty Images

The U.S. is reportedly closing in on a trade agreement that would impose 15% tariffs on goods from the European Union.

Why it matters: The framework — details of which were reported by Reuters and the Financial Times on Wednesday — would be the latest that implements hefty tariffs on a key ally.

President Trump has lambasted Europe for what he sees as unfair trade policies, making a deal tough to hash out.
At one point Trump said the bloc was "nastier than China" with respect to trade.

Driving the news: Reuters reported that the 15% tariff rate would apply to European cars, one of the sticking points in the negotiations.

Both sides could drop tariffs on key imports, including spirits, medical devices and aircraft, the FT reported.

The big picture: If those reported details hold, the U.S.-EU trade agreement would look similar to that of Japan — though top Trump administration officials say the nation made significant concessions to land that tariff rate.

With a deal, Europe would avoid the 30% tariff rate that Trump threatened to impose on its U.S.-bound goods on Aug. 1.

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U.S., Europe closing in on trade deal with 15% tariffs, reports say

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