Donald Trump announces Deals with the EU Most commodities entered the United States from Europe and required the group to make huge investments in U.S. energy products, thus imposing a 15% tariff, avoiding a trade war between the two world’s largest economies.
Although the 15% interest rate is half the Trump threat, many will be disappointed with it. When the UK accepts 10% tariff Trade Agreement May with the United States European leaders extensively reported Think this is a bad thing.
Brussels also agreed to purchase $75 billion (£560 billion) of oil, natural gas, nuclear fuel and semiconductors, including liquefied natural gas, over three years, while agreeing to invest $60 billion (£44.6 billion) in the U.S. in the U.S., including the purchase of military equipment.
An analyst believes the deal is a “major victory” for the US president, while the EU’s gains are not very clear. “Tariffs of 15% on European goods, forced purchases of U.S. energy and military equipment and retaliation of zero tariffs Europethis is not negotiation, this is the art of transaction.
Here are five key points:
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1. There is still some uncertainty
According to Trump, although European Commission Director Ursula von der Leyen said that steel tariffs on steel could be replaced by a quota system, the United States will impose a 50% tariff on steel and aluminum through further negotiations.
Drugs also caused confusion after Trump said it was not included, but senior U.S. officials later confirmed that they were actually subject to 15% tariffs.
According to Von der Leyen, the zero tariff will apply to a range of sectors, including “all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, certain agricultural products, natural resources and critical raw materials.” But for some industries, there is uncertainty – Sunday’s announcement has not yet cleared the tariffs that European wine and spirit producers will face in the United States.
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2. Trump can also change the terms of the deal
Teneo associate director of research Carsten Nickel said Sunday’s deal was “a high-level, political deal only” and could not replace the carefully hammered trade deal: “This in turn creates the risk of different interpretations along the way, as seen immediately. Conclusion of US-Japan transactions. ”
On Sunday, senior U.S. government officials told reporters in Washington that Trump will retain the ability to raise tariffs in the future if European countries do not meet the investment commitments contained in the deal.
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3. The Split of Ireland
The deal establishes a division on the Irish Island, as traders in Northern Ireland can sell to the United States at a 10% tariff rate, which is provided by a deal in the UK, while neighbors in Ireland will hit at a 15% tax rate.
The gap will make for a difficult diplomatic dialogue with guaranteed stability throughout the island Good Friday AgreementThe consequences of Brexit have been shocked when customs arrangements Involved in Northern Ireland This is a huge headache for EU and UK negotiators.
Ireland’s Deputy Prime Minister Simon Harris said he “regrets” the 15% tariff rate, but “certainty” is important.
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4. The melancholy of the German industry
German Chancellor Friedrich Merz welcomed the deal, saying it avoided a trade conflict that would strike Germany’s export-driven economy and its large automotive industry. German automakers, Volkswagen, Mercedes and BMW are the biggest hits for U.S. cars’ 27.5% tariffs and now imported parts.
But the powerful BDI industrial groups federation was disappointing. “Even a 15% tariff rate can have a huge negative impact on export-oriented German industries,” said Wolfgang Niedermark, a member of the federal leader. The country’s VCI Chemical Trade Association said the deal’s interest rates were “too high”.
The impact of tariffs is likely to have a huge impact on some companies. Automaker Volkswagen said it suffered a hit of 1.3 billion euros ($1.5 billion) in the first half due to higher tariffs.
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5. Tariffs are still much higher than historically
Although Von der Leyen defined the protocol as “stable” and “predictability”, Brussels’ “stability” and “predictability”. Original target In negotiations, there is a tariff agreement for “zero zero”, and tariffs are still far higher than in history.
“The cruel uncertainty is over, and the deal is affordable for the EU,” said Holger Schmieding, chief economist at Berenberg Bank. “Trump can claim that this asymmetric deal is ‘win’ for him. But the results are still bad compared to what prevailed before Trump launched the trade war.”
So are American consumers Possible tariff costs As the company’s prices rise, many economists warn.
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Health & Wellness Contributor
A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
