Brussels is preparing for a no-deal scenario as uncertainty persists about if and when a trade agreement between the European Union and U.S. will materialize.
Lawmakers on Thursday signed off on a major package of counter-tariffs which would target a wide range of goods and discussions are reportedly ongoing about deploying the EU’s so-called “trade bazooka.”
Measures could kick in soon as there are just a few days left before Aug. 1, after which EU imports to the U.S. are set to be slapped with 30% tariffs and the EU is expected to respond promptly.
Talks of a potential deal have however also been heating up this week, with sources telling CNBC that the current base-case scenario for a deal includes a 15% tariff on EU imports to the U.S. Any possible exemptions are still being worked out, they noted.
But crucially, much depends on U.S. President Donald Trump, who is known for last minute changes of heart and quick decision making. There are therefore no guarantees about what a potential deal could look like.
