The US-EU non-tariff trade agreement is about to be reached, but there is still uncertainty regarding tariff issues.

On June 21, according to the Wall Street Journal, the United States and the European Union appear to be close to reaching an agreement on a number of non-tariff trade issues, covering areas ranging from deforestation rules to the treatment of American technology companies in Europe, but the fate of the upcoming tariffs by both trading partners is still unclear. According to people familiar with the matter, a draft “peer-to-peer trade agreement” circulated by the Office of the U.S. Trade Representative lays out a series of preliminary agreements on specific trade issues, including the European Union’s Digital Markets Act, carbon border tariffs, shipbuilding and more. The deal appears to be close to the final version, but stressed that changes are still possible in the coming weeks, the people said. The text does not specifically mention any of the tariffs that President Trump has threatened or imposed on the European Union — from the 20% reciprocal tariffs that Trump suspended in April to higher tariffs on specific industries such as automobiles and steel, people familiar with the matter said. The text also does not elaborate on the EU’s proposed retaliatory tariffs, which are set to take effect on July 14 if no agreement is reached. It is unclear whether the tariffs will be resolved in a separate agreement, whether the talks will be deadlocked, or whether the two sides will decide to extend the talks beyond the July 9 tariff deadline set by Trump. In addition, it is uncertain whether the EU agrees with all the provisions of the draft agreement. Representatives of the U.S. government and EU executive agencies declined to comment on the details of the agreement, but an EU spokesperson said that the two sides were “fully and deeply engaged in the negotiations, and reaching a mutually beneficial solution through negotiation remains our first choice”.