【By Observer Net, Yuan Jiaqi】

According to China Central Television news, on the 23rd local time, US President Trump said that the US is conducting serious negotiations with the EU, and if they agree to open up to American companies, the US will allow them to pay lower tariffs. Previously, he had stated that he would impose a 30% tariff on goods imported from the EU starting August 1st.

Three sources familiar with the matter revealed that the EU and the US are about to reach a trade agreement, which would impose a 15% tariff on European imports to the US, similar to the agreement Trump reached with Japan this week. The US-Japan trade agreement reached on Tuesday (the 22nd) would implement a so-called "mutual tariff" of 15%, covering areas including "cars, trucks, rice and other agricultural products."

The three people said that in order to avoid the US raising the tariff to 30%, the EU may agree to this plan. Both sides will also exempt certain products from tariffs, including aircraft, spirits and medical equipment.

During the ongoing US-EU negotiations, in addition to the existing average EU tariff of 4.8% on exports to the US, EU exporters have been subjected to an additional 10% tariff on goods exported to the US since April.

According to the sources, the 15% minimum tariff will include the existing tariffs, so the EU considers that the agreement reached under these terms is equivalent to maintaining the status quo. Especially for its crucial car tariffs, it might be reduced from the current 27.5% to 15%.

Two of them also mentioned that EU officials had long been striving to secure tariff exemptions for European car manufacturers. However, the US-Japan trade agreement not only failed to exempt car tariffs, but Japan also agreed to open up its car market, which forced the EU to reluctantly accept higher tariff rates to avoid escalating trade wars.

It is reported that after talks with the US, the European Commission has already informed ambassadors of member states on Wednesday. A European diplomat bluntly said, "The Japan-US agreement has clearly shown extortionate terms. Although most member states are reluctant, they may still accept this agreement."

On Wednesday (the 23rd) local time, German Chancellor Merkel met French President Macron in Berlin for bilateral talks, during which she expressed hope that the US and EU could immediately reach an agreement to end the trade dispute, "We are currently expecting a resolution to the trade issue."

Macron pointed out that European countries have common demands, "maintaining stability and keeping tariffs as low as possible." He added, "Of course, we also hope to be respected as partners."

On July 23rd local time, German Chancellor Merkel met with French President Macron. Video screenshot

Before the EU's Trade Commissioner, Šefčovič, met with US Commerce Secretary Rutenberg on Wednesday, the EU stated that if no trade agreement was reached before the August 1st deadline and the US imposed tariffs on the EU, the EU plans to quickly impose a 30% retaliatory tariff on nearly 100 billion euros worth of American goods.

That day, the EU trade spokesperson, Olof Gulliksen, told reporters, "In order to make our countermeasures clearer, simpler, and more powerful, we will merge list one and list two into one."

It is reported that the first list targets 21 billion euros of American goods, currently suspended until August 6th; the second list, valued at 72 billion euros, is waiting for a vote by the 27 member states.

Gulliksen said that the merged list will take effect on August 7th, but the European Commission can suspend the implementation of these measures for a longer period. "Our primary task is negotiation, and we will continue to prepare for all outcomes," he said.

A source revealed that the affected American goods include Boeing aircraft, machinery, soybeans, American cars and bourbon whiskey, among other industrial products, which will face a 30% tariff rate.

Data shows that last year, the value of goods the US exported to the EU was 335 billion euros. This means that the EU's retaliatory tariffs will affect one-third of the US exports to the EU.

On the same day, US Treasury Secretary Scott Bessent told an interview that the EU has not yet proposed any innovative solutions like Japan. He said, "Negotiations have progressed better than ever before, and I think we have made good progress in our negotiations with the EU. But as I said before, the EU has problems with collective action."

It is reported that while the EU announced its latest countermeasures, Germany and other EU member states are calling for a tougher stance against the US. An anonymous government official said that if no agreement is reached, Germany is willing to support launching the EU's most powerful "anti-coercion instrument" (ACI) to combat US service trade.

The ACI would allow the European Commission to restrict American companies from participating in EU public procurement, or further limit the operations of large technology companies within the EU. Notably, the ACI came into effect at the end of 2023 and has never been used so far. Many see it as a "nuclear option" for the EU, and its ideal role should be to deter.

According to sources, the European Commission is discussing with member states whether to use the ACI. Some member states have been pushing for the use of this tool, but most countries want to observe developments after August 1st before further discussing to gain the required majority support.

This article is exclusive to Observer Net, and without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7530478874409320998/

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