US and EU Reach Major Trade Agreement, US to Impose 15% Tariffs on EU

This agreement temporarily ends the months-long tense negotiations between the US and the EU.

President Trump announced on Sunday in Scotland that the US and the EU have reached a major trade agreement, successfully avoiding a transatlantic trade war that could have severely impacted the global economy. The agreement will impose a uniform 15% tariff on most products exported from the EU to the US, far lower than the originally planned 30% tariffs set to take effect on August 1.

After meeting with European Commission President von der Leyen at his Turnberry Golf Club on the west coast of Scotland, Trump revealed the details of the agreement to the media. He called this agreement "the biggest deal of all," and stated, "This deal is basically done."

According to the agreement, the EU has committed to purchasing $750 billion worth of energy products from the US over the next few years, while increasing $600 billion in direct investment in the US, opening up markets for zero-tariff trade with the US, and purchasing a large amount of military equipment. Both sides agreed that cars and most goods will be subject to a 15% import tariff, but medicines and metal products are not included.

The agreement marks a significant breakthrough after months of tense negotiations between the two sides, and also avoids the White House's original plan to impose a 30% tariff on most EU goods starting August 1. Previously, Trump had threatened to impose punitive tariffs as high as 50% on nearly all EU goods, causing strong concerns among European countries.

"I hope to resolve this, but if not, then we'll impose tariffs," Trump said when announcing the agreement. He added that the EU would "do what they should do" to address the potential tariff risks.

This agreement is seen as one of the biggest victories in Trump's strategy to push for reform of the global trade system and impose higher tariffs on American trade partners. He said, "We've always had difficulties with trade with Europe, and it's a very unfair deal."

Von der Leyen, who met with Trump, said the agreement would "bring stability and predictability," and noted that the US and Europe together form the world's largest trading system, covering trillions of dollars in goods and hundreds of millions of people.

An EU official confirmed the agreement shortly after the talks, emphasizing that the agreement avoided a major risk in the 1.7 trillion euro transatlantic trade relationship. Previously, the US had imposed 50% tariffs on EU steel and aluminum products, 25% on cars and parts, and 10% on other goods, affecting about 370 billion euros, which accounted for seven out of ten of the EU's exports to the US.

Before the talks at the Turnberry Golf Club, Trump had played golf with his sons Eric and Donald Jr. He described the meeting with von der Leyen as "a privilege" and pointed out that both sides had reached an agreement on "fairness."

Von der Leyen said that Trump is "a well-known tough negotiator and deal maker," and Trump responded, "But I am fair." She added, "If we succeed, I believe this will be the biggest agreement we have ever reached."

The US delegation in the negotiations included US Commerce Secretary Rutenberg, who told the media, "Starting August 1, the taxes will begin, there will be no extension or leniency." He added, "The EU wants and needs to reach an agreement, which is why they flew to Scotland to negotiate."

If the agreement was not reached, the EU had planned to impose retaliatory tariffs on hundreds of US products, including beef, car parts, beer, and Boeing aircraft. The EU repeatedly warned that if US trade measures took effect, it would impact exports such as French cheese, Italian leather, German electronics, and Spanish pharmaceuticals, and could potentially escalate trade tensions between the US and Europe.

In addition to the EU, the Trump administration had already reached a trade framework agreement with the UK earlier this year, and announced a broader trade agreement during the G7 meeting. The White House said the agreement was basically complete, and Trump will meet with UK Prime Minister Starmer again at Turnberry next week to discuss bilateral matters.

Source: rfi

Original: https://www.toutiao.com/article/1838845169793035/

Statement: This article represents the views of the author.