The S&P 500 (SPX) has remained in positive territory for all of Wednesday’s trading session after it was announced that the U.S. had clinched trade deals with Japan and Indonesia. Now, another deal is closing in.
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The U.S. and the European Union are nearing a trade deal that would impose a 15% tariff on EU goods imported to the U.S., according to the Financial Times. The deal would include 0% tariffs on certain products from both sides, such as aircraft and medical devices, said people familiar with the matter.
U.S.-EU Trade Talks Advance Ahead of August 1 Deadline
Leaders from the bloc are currently discussing the tariff level, which would skyrocket to 30% by August 1 if a U.S.-EU deal isn’t reached. The current tariff level is around 15%, although automobile exports face a 27.5% tariff that could be lowered to 15% as well.
In the meantime, the EU will still consider imposing tariffs on $109 billion of U.S. imports if the two sides are unable to seal a deal.
The S&P 500 is up by 0.48% at the time of writing.
