The United States and the European Union are nearing a trade agreement that would set a 15% baseline tariff on most EU goods entering the U.S., according to diplomats cited by the Financial Times and Reuters. The prospective pact is designed to head off President Donald Trump’s threat to lift duties to 30% on 1 August. Draft terms would broadly mirror a framework the U.S. struck with Japan this month and could apply to sectors such as automobiles, pharmaceuticals, aircraft, spirits and medical devices, while carving out some exemptions. Existing U.S. tariffs average just under 5% for most products, and the current 50% levy on steel is not expected to change under the deal. EU diplomats said the European Commission briefed member-state envoys on the status of talks and that any final decision rests with the White House. Brussels has simultaneously readied retaliatory duties on €93 billion ($109 billion) of U.S. exports, with a vote scheduled for 24 July and potential implementation from 7 August should Washington proceed with the higher 30% tariff.