The United States has offered the European Union a new trade agreement that would set tariffs at 10 percent, aiming to resolve long-running disputes over steel and aluminum, according to a report by Politico.
The push to stabilize transatlantic trade
This proposed deal comes as both Washington and Brussels look to strengthen their economic ties amid rising global tensions and growing competition from China. By locking tariffs at 10 percent, the agreement would replace a patchwork of punitive measures that have weighed on cross-Atlantic trade since 2018.
For businesses on both sides, especially manufacturers and exporters, a predictable tariff regime could remove uncertainty and help lower operational costs. Analysts note that with inflation still a concern, stability in trade terms is a critical step for sustaining supply chains and investment flows.
Political challenges ahead
While the proposal has been welcomed by many in the private sector, it faces potential political hurdles. Some European leaders argue that a flat 10 percent tariff still imposes an unnecessary burden on EU producers. In the US, there is also resistance from domestic industries wary of increased European competition.
Diplomats hope to iron out these differences ahead of the next G7 summit, where leaders plan to present a united economic front.
Market impact
Reduced trade friction between the world’s two largest economic blocs would be positive for equities and risk assets, improving the outlook for multinational companies. For investors, it signals a possible easing of one of the major geopolitical risks hanging over global markets.
