Brussels: The European Union and the United States are reportedly on the brink of finalizing a trade agreement that would see a 15% tariff imposed on European goods, similar to a recent deal with Japan.

According to Anadolu Agency, sources familiar with the negotiations revealed that Brussels and Washington are nearing an understanding that could prevent the US from implementing a planned tariff increase to 30% on European goods starting August 1.

The proposed deal would establish a 15% minimum tariff, incorporating existing tariffs and potentially reducing current car tariffs from 27.5% to 15%. This arrangement is seen as a strategy by the EU to formalize standing agreements and avoid further escalation in tariffs.

Two of the sources indicated that the recent US-Japan agreement, which set a 15% tariff on Japanese exports, has influenced the EU's willingness to accept higher tariffs to prevent a trade war. However, they warned that if the US proceeds with the planned 30% tariff hike, the EU is prepared with a retaliatory package worth approximately £93 billion ($109 billion).

Olof Gill, a European Commission spokesperson, confirmed that a list of countermeasures has been approved by EU member states and is set to be adopted by the commission. These measures would take effect automatically on August 7 if negotiations do not yield a resolution.

Gill emphasized that while the EU is preparing for all potential outcomes, the focus remains on reaching a negotiated settlement. Intensive discussions are ongoing at both the political and technical levels, with a resolution described as "within reach."

In a joint news briefing, French Economy Minister Eric Lombard and Italy's Minister of Enterprises Adolfo Urso expressed their commitment to giving the negotiations a fair chance. Lombard stated that if talks fail, EU member states are prepared to respond appropriately.

Meanwhile, US President Donald Trump has praised the trade agreement with Japan, calling it "perhaps the biggest deal ever made," and highlighting the 15% tariff on Japanese exports to the US as a significant achievement.