TechFlow news, June 21 — According to The Wall Street Journal, the United States and the European Union appear close to reaching an agreement on several non-tariff trade issues, covering areas ranging from deforestation rules to the treatment of U.S. tech companies in Europe. However, the fate of impending tariffs between the two trading partners remains unclear. Insiders revealed that a draft "reciprocal trade agreement" distributed by the Office of the U.S. Trade Representative outlines preliminary consensus on a series of specific trade matters, including the EU's Digital Markets Act, carbon border adjustment mechanism, and shipbuilding industry. These individuals said the agreement appears nearly finalized but emphasized it could still change in the coming weeks.
The text does not specifically mention any tariffs threatened or imposed by President Trump—ranging from the 20% reciprocal tariffs paused by Trump in April to higher tariffs on specific sectors such as automobiles and steel. It also does not detail the EU’s proposed retaliatory tariffs, which are scheduled to take effect on July 14 if no deal is reached. It remains unclear whether tariff issues will be addressed in a separate agreement, whether related negotiations are deadlocked, or whether both sides will decide to extend talks beyond Trump’s July 9 tariff deadline.
Moreover, it is uncertain whether the EU agrees to all terms in the draft agreement. Representatives from the U.S. government and the EU executive body currently declined to comment on the details of the agreement, but an EU spokesperson said the two sides are “fully and deeply engaged in negotiations, and achieving mutually beneficial solutions through dialogue remains our preferred path.”
