The White House has confirmed that the USA and the European Union have finalized negotiations on a new trade agreement aimed at reducing economic tensions between the two regions.
Details of the Agreement
The agreement was reached ahead of the August 1 deadline that would have triggered new tariffs. According to US President Donald Trump, the country will impose a 15% tariff on most goods coming from Europe, including vehicles. Trump described the deal as "a very powerful deal," referring to it as "the biggest of all the deals."
Responses from European Leaders
European Commission President Ursula von der Leyen acknowledged that the agreement was reached after "tough negotiations", emphasizing its significance. Tariff exemptions will apply to aircraft, certain chemicals, and pharmaceuticals, which is crucial for countries such as Germany and France.
Impact on Economy and Trade
In return for capping the tariffs at 15%, the EU agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion in the U.S. economy. These steps are aimed at improving the trade balance between the regions. Irish Prime Minister Micheál Martin and German Chancellor Friedrich Merz responded positively to the agreement, although Martin noted that the increased tariffs will make trade more expensive and challenging.
The agreement reached between the US and the EU opens new horizons for both economies, despite existing risks and challenges.
