The United States and the European Union are getting closer to reaching a trade deal that would impose a 15% tariff on European imports, according to a report by the Financial Times on Wednesday. This move would mirror a similar agreement made earlier in the week between US President Donald Trump and Japan.

EU Prepares Counter-Tariffs as Backup Plan

Even as talks continue, the European Union is preparing a retaliatory plan. If the two sides fail to reach a deal before the August 1 deadline, the EU plans to introduce up to 93 billion euros ($109 billion) in tariffs on US goods. These counter-tariffs could reach rates as high as 30%, the report said.

No Official Comment Yet

So far, neither the White House nor a European Union spokesperson has responded to Reuters’ requests for a statement. Reuters also mentioned that it could not independently verify the details reported by the Financial Times.

EU Still Prefers a Deal

Earlier on Wednesday, the European Commission repeated its commitment to avoid a trade war. It said its top goal is to reach a negotiated agreement with the US. This would help prevent the 30% tariffs that President Trump has threatened to apply on EU exports starting from August 1.

Auto Trade Imbalance Highlights Tension

Trade numbers show why tensions are rising. In 2024, the US imported over $55 billion worth of vehicles and auto parts from Japan. Imports from the EU reached 47.3 billion euros (around $55.45 billion). In contrast, US-made cars have a very small presence in both the Japanese and European markets, increasing the pressure on Washington to level the playing field.