The White House issued a rebuttal on Wednesday after reports broached the possibility of a trade deal with the European Union ahead of the August 1 deadline. US President Donald Trump had previously threatened to impose higher tariffs against the bloc from next month. The updates came even as the bloc continued preparations for a $109 billion package of retaliatory tariffs.
“Discussion about any possible deals with the United States should be considered speculation unless they are announced by President Donald Trump,” reports quoted White House spokesperson Kush Desai as saying.
The POTUS confirmed later on Wednesday that the United States was in the process of completing a trade deal with China and planned to set straight tariffs for most of the rest of the world. Trump also said that Washington was in serious trade talks with the European Union and would set lower tariffs for the bloc if it opened itself up to US businesses.
EU ‘heading towards trade deal’ with Washington?
The clarification came hours after the Financial Times quoted two EU diplomats to reveal that the bloc was heading towards a deal with Washington. The yet-to-be-confirmed agreement would impose 15% tariffs on European imports — with Brussels matching the reciprocal levies. Officials told the publication that the EU would continue preparations for a possible €93 billion package of retaliatory tariffs — set at up to 30% — if a deal could not be struck by the end of this month.
According to a Financial Times report, both sides are in talks to waive tariffs on some products including aircraft, spirits, and medical devices. Exporters from the bloc have been paying an additional 10% levy on goods sent to the US since Trump announced sweeping reciprocal tariffs in April — in addition to pre-existing duties averaging 4.8%. The 15% tariff deal would essentially cement a status quo ahead of the August 1 deadline. The rate, which could also extend to cars, would mirror the framework agreement the United States has struck with Japan.