On July 23, citing the Financial Times, the United States and the European Union (EU) are very close to signing a trade tax agreement with a common tax rate of 15%. This is seen as an important step in efforts to improve transatlantic trade relations, which have been tense in recent years.
This agreement will include the elimination of import duties on some key commodity groups, including aircraft, spirits, and medical equipment. Removing these tax barriers will help promote the flow of goods between the two large economies and support manufacturing and exporting businesses in strategic sectors.
Previously, the EU had planned to impose a 30% tariff on $117B of US goods if no agreement was reached before August 1. This plan would consolidate existing tax rates and propose levies on US products such as Boeing aircraft, automobiles, and bourbon.
