00:00The European Union and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday.
00:12This development potentially moving President Donald Trump closer to another major trade agreement on the heels of the one he just unveiled with Japan yesterday.
00:22European negotiators were hoping to reach an agreement to dodge the 30% tariff rate Trump has said he would impose on imports from the 27-nation bloc on August 1.
00:35The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan, which Trump announced late on Tuesday.
00:44There could be concessions for sectors like aircraft and lumber, as well as term matching and agricultural products which would not face tariffs.
00:52Washington does not, however, appear willing to lower its current 50% tariff on steel.
00:58The White House did not immediately respond to a request for comment.
01:02Trump Trade Advisor Peter Navarro told Bloomberg News the report from EU should be taken with a grain of salt.
01:08As talks continued, the European Commission said it would press on the potential countermeasures in case a deal was not reached.
01:16EU member states were set to vote on 93 billion euros of counter tariffs on U.S. goods on Thursday, European diplomat said.
01:25Trump was aiming to secure an agreement on the heels of a complicated deal reached with Japan, the largest foreign investor in the U.S.
01:33That deal included a $550 billion investment and loan pledges from Japan and its commitment to buy 100 Boeing airplanes and boost purchases of U.S. agricultural products.
01:46That investment to be spent at Trump's discretion would focus on key industries like energy, semiconductors, critical minerals, pharmaceuticals, and shipbuilding, the White House said on Wednesday.
01:57Tariffs on Japan's auto sector will drop from 27.5% to 15% as part of the agreement reviving hopes for similar treatment for European cars.
