With less than a week to go before the 90-day reprieve on their reciprocal tariffs expires, the United States and the European Union have yet to iron out key components of a trade deal that could ignite another tariff war, CNBC reported Friday.
In April, the Trump administration imposed a 20% tariff on all goods coming in from the EU but shortly paused the taxes to allow 90 days for negotiations which will expire July 8. While a 10% tariff remains in place for most items, a 25% duty on foreign cars, steels and aluminum remains intact. The EU has paused its preliminary set of retaliatory measures, a response to the metals tax, which are aimed at roughly $21 billion worth of U.S. products.
The outlet spoke to sources earlier in the week that indicated any deal that could be hammered out in the remaining days would be broad in scope but short in substance. European Commission President Ursula von der Leyen agreed adding, “What we are aiming at is an agreement in principle,” she said, adding that a detailed agreement was “impossible” to be worked out during the 90-day window. Von der Leyen also warned that if a deal can’t be reached, “all the instruments are on the table.”
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