Insiders: The US and EU will reach an agreement on multiple non-tariff trade issues.

On June 21, The Wall Street Journal reported that the United States and the European Union seem poised to reach an agreement on several non-tariff trade issues, covering areas from deforestation rules to the treatment of American tech companies in Europe, but the fate of tariffs that both trading partners are about to implement remains unclear. Sources revealed that a draft of a "reciprocal trade agreement" circulated by the U.S. Trade Representative's Office outlines a preliminary agreement on a series of specific trade issues, including the EU's Digital Markets Act, carbon border taxes, and shipbuilding industries. These individuals stated that the agreement appears to be close to its final version but emphasized that changes may still occur in the coming weeks. Sources indicated that the text does not specifically mention any tariffs threatened or imposed by President Trump on the EU—from the 20% reciprocal tariff suspended by Trump in April to higher tariffs on specific industries such as automobiles and steel. The text also does not detail the EU's proposed retaliatory tariffs, which are set to take effect on July 14 if no agreement is reached. It remains unclear whether the tariff issue will be resolved in a separate agreement, whether negotiations are at an impasse, or whether both sides will decide to extend talks beyond the July 9 tariff deadline set by Trump. Additionally, it is uncertain whether the EU will agree to all terms of the draft agreement. Representatives from the U.S. government and the EU's executive body currently declined to comment on the details of the agreement, but an EU spokesperson stated that both sides "are fully and deeply engaged in negotiations, and reaching a mutually beneficial solution through consultation remains our preferred option."