EU Receives US Draft, Nears Completion of Trans-Atlantic Tariff Deal

The European Commission said it has received a draft text from Washington aimed at completing a joint EU-US statement that would spell out the tariff cuts agreed in principle at the end of July. Commission spokespersons told reporters on 14 August that negotiators are “working hard” to finalise the document and hope to release a common communiqué shortly. Only part of the framework deal has taken effect so far: a 15% baseline tariff on European exports to the United States replaced higher duties last week. The unfinished statement is expected to confirm a reduction in the US import levy on EU cars and parts to 15% from 27.5% and to set zero-tariff lists for items such as aircraft, pharmaceuticals and semiconductors. Steel and aluminium would remain subject to duties of up to 50% until a quota system and a proposed "metals alliance" are agreed. Brussels declined to give a timeline for the remaining executive orders that must be issued by the White House, but said the arrival of the US draft marks progress toward putting the full agreement into force.