The European Union and Donald Trump have signed an agreement that could significantly alter transatlantic trade. While the official goals of the announcement sound commendable, the consequences for the European economy could be severe.
Export Taxes from Europe
On July 28, the so-called Turnberry Agreement imposes a 15% tax on a wide range of products exported from Europe to the United States. This move particularly affects key sectors such as:
* automotive, * luxury goods, * pharmaceuticals, * cosmetics.
For instance, German manufacturers will now face a 15% customs duty, a shift from the previously imposed 27.5% tariffs.
Energy Procurement Commitments
The EU has committed to purchasing $750 billion of American fossil fuels, including shale gas. This commitment complicates the achievement of climate goals, highlighting the need for a balanced approach to these issues. Additionally, the end of customs exemptions for medicines, which account for 22.5% of European exports, raises concerns.
Impact on European Economic Strategy
The agreement ushers in a new era of strategic dependence for the European economy. Companies like LVMH and Kering are seeking ways to mitigate the impact by relocating parts of their production to the U.S. However, the overall challenges could impact entire sectors and the trade balance, potentially worsening due to the new obligations.
The agreement between Donald Trump and the European Union underscores profound changes within the global economy. International trade is now conducted under unequal terms, which may lead to serious consequences for the European economy.
