Wed Jul 23 22:53:42 UTC 2025: ## US and EU on Verge of Trade Deal to Avert Tariff War
**Berlin -** Hopes are rising for a transatlantic trade agreement between the United States and the European Union, with both sides expressing optimism that a deal to avert steep tariffs is imminent.
Speaking in Berlin on Wednesday, German Chancellor Friedrich Merz stated that negotiations were making progress, referencing ongoing talks aimed at preventing the US from imposing a threatened 30% tariff on EU exports, scheduled to take effect August 1.
“We have been hearing in the last few minutes that there could possibly be decisions,” Merz said.
The optimism was echoed by US Secretary of the Treasury Scott Bessent, who told Bloomberg Television the talks were “going better than they had been.”
Reports indicate that the potential deal would set a 15% tariff rate on EU goods, a compromise mirroring a recent agreement between the US and Japan. French President Emmanuel Macron emphasized the EU’s commitment to achieving the lowest possible tariffs while maintaining mutual respect as partners.
EU Commissioner for Trade Maros Sefcovic and US Commerce Secretary Howard Lutnick held further discussions on Wednesday, followed by briefings for EU member states by European Commission officials.
While the EU is reportedly under pressure to accept the compromise, particularly after the US-Japan agreement, potential exemptions for specific sectors like aircraft, medical devices, and alcoholic beverages are being discussed.
“The Japan agreement made clear the terms of the shakedown,” an EU diplomat told the Financial Times, suggesting many member states are reluctantly prepared to accept a similar deal.
The agreement would come as a relief to EU exporters who have been facing a 10% tariff on goods sent to the US since April, in addition to pre-existing levies. Despite the promising developments, the European Commission has a retaliatory plan in place, prepared to impose over $100 billion in tariffs should negotiations collapse.
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