EU Braces for US Tariff Impact Amid Ongoing Negotiations

The European Union is preparing for a significant impact as the United States plans to impose a 15% tariff on a majority of EU exports starting Friday. The decision comes even though a crucial document clarifying the agreement's operation remains unfinished.

Over the past weekend, a political agreement between US President Donald Trump and European Commission President Ursula von der Leyen targeted around two-thirds of EU produce, valued at approximately 380 billion euros. While the tariffs are set to take effect, European Commission spokesman Olof Gill noted that the two sides are still finalizing a joint statement that will outline the terms of their understanding, which will not be legally binding.

The EU is further negotiating exemptions for strategic goods like aircraft parts and certain chemicals. The US commitments will dictate the next steps, with European wine and spirits hoping for future exemption. Retaliatory EU measures hang in balance, poised for activation if the negotiations sour by August 7.

(With inputs from agencies.)