EU and US on the Brink of Historic Trade Deal with Tariffs Under 10%

Portuguese Finance Minister Joaquim Miranda Sarmento has expressed optimism about the European Union and the US reaching a groundbreaking trade agreement. The deal, which could see tariffs drop below 10%, aims to maintain and enhance trade flows between the two economic powerhouses.

During a Bloomberg Television interview in Brussels, Sarmento highlighted the potential benefits of such an agreement, stating it would be "beneficial to both parties" and increase value for citizens. An update on the negotiations is expected during the EU finance ministers’ meetings scheduled for Monday and Tuesday.

With the July 9 deadline looming, the EU is under pressure to finalize a deal before US tariffs on most EU exports escalate to 50%. US President Donald Trump's administration has been imposing tariffs globally, citing the need to revitalize domestic manufacturing and prevent exploitation of the US economy.

Sarmento emphasized the EU's stance: "If the terms are not favorable, there will be no agreement." He also suggested that failure to reach a deal by Wednesday could lead to a new deadline, advising against full-scale retaliation by Europe to protect its economy and consumers.

In other news, Portugal is set to begin the privatization process of TAP SA, its state-owned airline, with plans to sell less than 50% of the carrier. Major European airlines, including Air France-KLM, Deutsche Lufthansa AG, and IAG SA, have shown interest, attracted by TAP's strong connections to Brazil, Africa, and North America.