Trump's looming deal with European Union ignores his signature priority: report

President Donald Trump is close to securing a much-desired trade deal with the European Union, but that deal doesn't address a couple of key priorities, the Wall Street Journal reported on Friday.

The trade deal only includes non-tariff related issues like deforestation, shipbuilding, carbon-based border tariffs, and more, the Journal reported, citing people with knowledge of the text. However, it does not address the tariffs that Trump has threatened to impose on the EU.

The Journal reported that tariffs could be addressed in a separate deal.

Trump has threatened to impose a range of tariffs on the EU, like the 20% reciprocal tariff he threatened in April, to higher tariffs on automobiles, steel, and other goods. Those tariffs are scheduled to go into effect on July 17 if no agreement is reached.

The trade deal also opens the doors to a couple of policies that are important to U.S. firms. One is the enforcement of the EU's Digital Markets Act, a bill that has been used to prosecute American tech companies like Apple and Meta Platforms.

The Journal said that Trump has proposed exempting U.S. businesses from the law, which would largely "defang" it.

The two countries would also work together to establish a carbon border adjustment mechanism, a tariff that would be charged based on the amount of carbon a good includes. Under the proposed agreement, the U.S. would be exempt from the tariff for one year. U.S. energy exports to the EU would also be exempted.