TMTPOST -- The European Union and   the United   States are reported to   be nearing a   trade deal that would set   a baseline tariff   rate at 15%   as the bloc is preparing its   massive   retaliatory   package   once   the negotiations fail to reach   the acceptable   deal.

Credit：Xinhua News Agency

The EU and U.S. are closing in   on a trade deal that would impose 15%   tariffs on European imports,   mirroring a   trade accord between the U.S. and Japan   reached this week,   the Financial Times   ( FT )   learned from sources   on Wednesday.

According to   the sources, the 15%   minimum   tariffs, the same with that dictated by the U.S.-Japan deal   on   the Asian economy, would include   existing   duties, which   means the current 25%   auto   tariffs would be brought   down to 15%.   It was said both   the EU and U.S. would waive tariffs on some products, including aircraft, spirits   and   medical devices.

Brussels could agree   to the 15%   reciprocal   tariffs to avoid   such higher   levies threatened   by U.S. President Donald Trump,   per the sources.   Trump   on July 13   released his letter to Ursula von der Leyen, president of the European Commission, dictating 30% tariffs on the EU exports starting August 1.

The EU and U.S. are progressing toward   an   agreement   that   would impose 15%   tariffs on most   products, Bloomberg   cited diplomats following the FT report.   EU officials are reportedly pushing to have the duties cover   sectors including cars, while steel   and aluminum   imports   above a certain quota   would face a higher tariff   of 50%.

The Guardian   also learned from diplomats   that the deal would place 15% tariffs   on   most   imports from   the EU,   adding that it will grant   certain exemptions from levies   on products   inlcuding   aircraft and   medical devices. It was said 15% tariffs   would include the most-favoured nation tariff and would not be stacked on top of existing import duties faced by various sectors.   

Both   the Bloomberg and   the FT cited a   U.S. official   that negotiations remain   fluid. The   EU will continue to prepare   a possible € 93   billion package of retaliatory   tariffs,   set at up to 30%,   if they could not agree a deal by August   1, the   White House ’ s self-imposed deadline,   according to the   FT   sources.

The White House later Wednesday poured   cold water   on the   reported   possible deal with the EU. Discussion about any possible trade deals with the US should be considered "speculation," unless they are announced by   Trump, White House spokesman Kush Desai said.

The EU   earlier   that day threatened to impose 30% retaliatory tariffs on   nearly € 100   billion   ( $117   billion )   worth of goods in case no deal   by   the   August 1 deadline, and   Trump moves forward with his threat of 30% tariffs.   As a part of a first wave of countermeasures, the EU would combine an already approved list of tariffs on € 21 billion of US goods and a previously proposed list on an additional € 72 billion of American products into one package, a European Commission spokesman said.

The   EU has finalized a second list of countermeasures to target American   goods worth € 72 billion, or $84 billion, including Boeing Co. aircraft, automobiles,   bourbon,   machinery products, chemicals and plastics, medical devices, electrical equipment, wines and other agricultural goods   if it decides to retaliate   against   new   U.S. tariffs,   Bloomberg   last week   cited a 206-page list prepared by the European Commission.   The news media outlet   on Wednesday cited   sources that industrial goods such as Boeing Co. aircraft, U.S.-made cars and bourbon whiskey, would face a levy that matches Trump ’ s 30% threat   as part   of   the EU ’ s countermeasures.

Two senior Trump administration officials on Wednesday suggested   the   EU   should follow suit   after Japan   made finance pledges   to strike a trade deal   with   the U.S.   Trump on   Tuesday announced a "massive"   deal including   a 15% reciprocal tariffs on Japan.   He said the Asian ally will invest   $550 Billion into the   U.S., and "open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things."

When asked whether other trading partners could get a similar reciprocal levy   with Japan,   U.S.   Treasury Secretary Scott Bessent   said   Japan   made   U.S.   bring down its   reciprocal tariff   rate   "because they were willing to provide this innovative financing mechanism." Bessent stopped short of saying the EU   can win the same sort of trade deal   as Japancut,   but said "we ’ re making good progress"   on   talks with the bloc.

U.S. Commerce Secretary Howard Lutnick   in   a   Bloomberg interview   said   Japan ’ s pledge of   hundreds of   billions   in   U.S. investments "could be"   a model   for the EU. He   described Japan ’ s finance pledge as   "equity, loans and loan guarantees", and noted   that would   not   be aimed at any individual project of Japanese companies.

"This is literally America saying, we want to build a generic pharmaceutical" plant, or a semiconductor fab, or critical-minerals facility, which Japan would then finance, Lutnick said.   He   also   said to accept   U.S. vehicle standards,   like Japan   did,   and buy more   American products   would help   the EU secure a more favorable deal.