The United States and the European Union have reached a trade agreement.
On July 27th, local time, U.S. President Donald Trump announced that the United States had reached a trade agreement with the European Union, imposing a 15% tariff on goods exported from the EU to the U.S. Trump stated that the EU would increase its investment in the U.S. by $600 billion, purchase American military equipment, and buy $750 billion worth of U.S. energy products. He mentioned that the tariffs on steel and aluminum would remain unchanged, emphasizing that energy is a key part of this agreement. The deal is expected to benefit the automotive industry and have a significant impact on agriculture. The U.S. will invest heavily in the semiconductor sector, and the British Prime Minister expressed his pleasure with the agreement.
U.S. Secretary of Commerce Gina Raimondo stated that the U.S. would determine the tariff policy related to chips within two weeks.
Trump mentioned that the U.S. is considering reaching agreements with three to four other countries, most of which will involve agreed-upon tariffs. The U.S. will maintain low tariffs on other countries, and countries will receive clarification or confirmation letters within the next week, with the tariff confirmation letter to be issued before August 1st.
European Commission President Ursula von der Leyen stated that both the EU and the U.S. agreed to implement a unified 15% tariff rate, including all types of goods, such as cars, subject to this tariff standard. Von der Leyen mentioned that these trade agreements will bring stability to the market.
Von der Leyen: The 15% tariff rate is the best outcome that the European Commission can achieve.
On July 27th, local time, following an announcement by President Trump of a significant trade agreement between the EU and the U.S., European Commission President Ursula von der Leyen explained some of her decisions during the trade negotiations with the U.S.
Von der Leyen noted that the EU still relies excessively on Russian liquefied natural gas, making it very popular for importing more affordable liquefied natural gas from the U.S.
Regarding tariff arrangements, von der Leyen confirmed that the tariffs on the automobile industry in the agreement would be uniformly set at 15%.
She stated that under the current circumstances, a 15% tariff level is the best outcome that the European Commission can achieve.
Furthermore, she confirmed that the EU and the United States have reached an agreement on the pharmaceutical industry to implement a unified 15% tariff rate. Fonseca admitted that the EU and the US have not yet made a decision in the realm of spirits, and the details of the trade agreement signed that day will be announced in the coming weeks.
U.S. Secretary of Commerce: The EU will open its $20 trillion market
On July 27th local time, U.S. Secretary of Commerce Wilbur Ross posted on social media stating that President Trump has opened the door to one of the world’s largest economies, the EU will open its $20 trillion market, and will for the first time fully accept American automobile and industrial standards.
Additionally, the EU will purchase $750 billion worth of energy products from the United States and invest $600 billion in the country. The U.S. tariffs on EU-made products will be set at 15%.
European Parliament official: The U.S.-EU trade agreement severely imbalances and harms European interests
On July 27th local time, following the announcement of a new trade agreement between the U.S. and the EU, Bernd Lange, the Chairman of the European Parliament’s Committee on International Trade, expressed strong dissatisfaction with the agreement, stating it was neither satisfactory nor in line with the fundamental interests of Europe.
Lange pointed out that this agreement is biased. He believes that although a 15% uniform tax rate brings some degree of predictability and legal security to trade relations, overall, the agreement is far from balanced and could potentially cause long-term harm to Europe. Lange mentioned that the EU Commission’s additional investment commitment of $600 billion to the United States and large-scale procurement of American military technology are detrimental to European domestic employment and industrial development.
Lange further criticized that the agreement not only weakens the economic strength of the EU but also mirrors the practice of the Trump administration in “blackmailing” countries like Japan with tariffs.
Lange emphasized that the agreement is not a mutually beneficial trade cooperation but rather a unilateral concession. He also pointed out that the U.S. Treasury Secretary announced that the additional tariffs have brought in $27 billion in revenue for the United States. Lange stated that the true intention of the United States is to generate revenue through tariffs, and the outcome of this negotiation cannot be considered a victory for the interests of the European Union, let alone a commendable diplomatic achievement.
U.S. officials claim Trump has the right to reimpose higher tariff levels when other countries fail to fulfill investment commitments
On July 27th local time, senior U.S. government officials stated that President Donald Trump has the right to reimpose higher tariff levels when other countries fail to fulfill their investment commitments.
The official mentioned that the European Union hopes to continue discussions with the United States on the issue of steel and aluminum tariffs. The agreement reached between the United States and the EU stipulates that applicable tariffs will be based on either the “most-favored nation” rate or 15%, whichever is higher.
The official revealed that the U.S.’s tariff investigation against aircraft is still ongoing, and tariffs are currently not being imposed. It is expected that final tariffs may not be added, and further action will depend on the outcome of the investigation.