Washington (USA)/Brussels (Belgium), 22 August (Kiran News). The European Union and the United States have finalised their trade agreement imposing a 15 percent tariff. Last month, both sides announced the agreement to move away from a trade war, but it was only a formal deal then. Negotiators had been discussing the details for weeks, and on Thursday, they shared the full details with the world.
According to reports in The New York Times and the Australian Broadcasting Corporation, under this agreement, most European exports to the US will now face a clear maximum tariff rate of 15 percent. In a joint statement, both parties agreed to reduce tariffs on European cars, medicines, and timber. However, other major exporters—including Europe’s key wine and spirit sector—failed to secure zero-tariff concessions and will now have to pass on the increased costs to American consumers.
Both sides stated, “This agreement will affect the world’s most valuable economic relationship, worth 1.6 trillion euros ($2.8 trillion) per year.” The deal is based on last month’s agreement between European Commission President Ursula von der Leyen and US President Donald Trump.
Von der Leyen said, “In the face of challenging circumstances, we have worked for our member states and industry, restoring clarity and consistency in transatlantic trade.” EU Trade Commissioner Maroš Šefčovič called the deal “the most favourable ever granted to any trade partner,” adding that it reduces the US tariff on European car exports from 27.5 percent to 15 percent. He also noted that, despite efforts by top French and Italian producers, the attempt to set a zero percent tariff on wine and spirits failed.
Šefčovič stated, “Nevertheless, these doors are not closed forever. These tariffs will affect up to $10 billion in imports annually and raise the prices of French champagne, Irish whiskey, and Italian prosecco for US consumers.” Gabriel Picard, head of France’s Wine and Spirits Federation, said the 15 percent tariff has left the sector “extremely disappointed.” French Trade Minister Laurent Saint-Martin said his government would seek further concessions in the deal.
Under the agreement, the EU has committed to significantly improving market access for US seafood and agricultural products (tree nuts, dairy, fruit, vegetables, pork, and bison meat). From 1 September, a special preferential arrangement will apply to several EU exports to the US, including “rare natural resources” like cork, all aircraft and aircraft parts, and generic medicines. The commission said these will have zero or near-zero tariffs.
The EU and US will also work together to fight “unfair and distorted competition” in the steel, aluminium, and copper sectors. Amid some opposition, von der Leyen said the European Commission will continue to push for more exemptions, adding, “This is not the end of the process. We will keep negotiating for further tariff reductions, identifying more areas for cooperation, and unlocking greater economic growth potential with the US.”
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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