By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. June 22, 2025. Article no 1578.
The U.S. and the European Union are reportedly close to reaching a deal on various non-tariff trade issues. These include regulations related to deforestation, the treatment of U.S. technology companies under EU rules such as the Digital Markets Act, carbon-based border tariffs, and shipbuilding, among others.
A draft reciprocal trade agreement outlining these preliminary arrangements has been shared by the U.S. Trade Representative’s office, indicating that the deal is nearing completion, though it may still undergo changes in the coming days or weeks.
However, the status of tariffs between the two remains uncertain. Both sides have temporarily suspended tariffs on each other’s goods until July 9, but if no deal is reached by then, full reciprocal tariffs—up to 50% on EU imports into the U.S., along with countermeasures from the EU—are expected to come back into effect. The EU currently faces steep U.S. tariffs, including 50% on steel and aluminum and 25% on vehicles and parts. Reports that the EU might accept a flat 10% U.S. tariff have been dismissed by the European Commission as speculative and not reflective of ongoing discussions.
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Key sticking points in the negotiations include the EU’s stringent regulations on major technology firms, which the U.S. criticizes as unfair and restrictive. The EU, on the other hand, insists on maintaining its domestic regulatory autonomy, especially concerning digital platforms and efforts to combat disinformation and hate speech. These regulatory differences have been a major hurdle in finalizing a comprehensive trade agreement.
While a near agreement on non-tariff trade irritants is imminent, the future of tariff measures between the U.S. and EU remains unresolved and is subject to ongoing negotiation and deadlines in early July.
On April 17, President Trump expressed strong optimism about reaching a trade deal with the European Union before the end of a 90-day pause on global tariffs in July.
On April 2, President Trump announced sweeping tariffs, including a universal 10% tariff on all imported goods and higher country-specific tariffs for nations with significant trade surpluses with the U.S.
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© Copyright 2025 – Eurasia Business News. Article no. 1578.
Eurasia Business News 