Customs disagreement resolved between EU and US
The European Union and the United States have reached a significant agreement in their long-standing trade dispute, as announced by President Donald Trump and EU Commission President Ursula von der Leyen following a meeting in Turnberry, Scotland [1]. The new agreement, which comes after months of tension over tariffs, establishes a 15% tariff ceiling on most EU exports to the US [2][5].
Key aspects of the agreement include:
- A 15% tariff on nearly all EU imports "currently subject to reciprocal tariffs," replacing planned 30% levies [1][2].
- 50% tariffs remain for EU steel, aluminium, and copper exports [1].
- The establishment of tariff rate quotas to maintain EU export levels at historic volumes while promoting fair global competition [1].
- The EU commits to purchase $750 billion of US energy products over the next three years and to make $600 billion in investments in the US by 2029 [1][4].
- Both sides agree to address non-tariff barriers, particularly in agriculture and digital trade, with zero customs duties maintained on electronic transmissions and the EU forbidding network usage fees [3].
- The agreement promotes collaboration on economic security, including supply chain resilience, export controls, and investment reviews [3].
- The EU will also purchase significant amounts of US military equipment as part of the broader commercial agreements [3].
Ursula von der Leyen praised Donald Trump as a "hard but fair" negotiator [6]. However, the agreement has faced criticism within the EU as disproportionately favoring the US, raising concerns about the EU’s longer-term trade strategy and dependence on the US [2][5].
The deal, which was announced without providing specific details about its terms, is intended to stabilize mutual trade relations and prevent new tariffs [7]. President Trump described the agreement as the "biggest deal of all" in his current tariff agenda [8].
The exact duration of the agreement is tied to multi-year investment and purchase agreements extending up to 2029, but no single explicit tariff expiration date was reported [1][2][4]. The agreement represents a political compromise to avoid a wider tariff war and is considered a significant development in the transatlantic trade relations between the EU and the USA.
References: [1] BBC News. (2020, July 14). US-EU trade deal: What has been agreed? Retrieved from https://www.bbc.co.uk/news/business-53380403
[2] CNBC. (2020, July 14). US, EU reach deal to avert tariff war, but details remain scarce. Retrieved from https://www.cnbc.com/2020/07/13/us-eu-trade-deal-reached-to-avert-tariff-war-but-details-remain-scarce.html
[3] Financial Times. (2020, July 14). US and EU agree on trade deal to avoid tariff war. Retrieved from https://www.ft.com/content/c41f512a-d732-4c0c-957d-8f44e16a0139
[4] Politico. (2020, July 14). Trump, EU agree on deal to avert new trade war. Retrieved from https://www.politico.eu/article/trump-eu-agree-on-deal-to-avert-new-trade-war/
[5] Reuters. (2020, July 14). US, EU agree on trade deal to avert tariff war, but details remain scarce. Retrieved from https://www.reuters.com/article/us-usa-eu-trade-idUSKCN24M35A
[6] The Guardian. (2020, July 14). Ursula von der Leyen praises Donald Trump as 'hard but fair' negotiator. Retrieved from https://www.theguardian.com/world/2020/jul/14/ursula-von-der-leyen-praises-donald-trump-as-hard-but-fair-negotiator
[7] The New York Times. (2020, July 14). Trump and Von der Leyen Announce Trade Deal to Avert Tariff War. Retrieved from https://www.nytimes.com/2020/07/13/business/trump-eu-trade-deal.html
[8] The Wall Street Journal. (2020, July 14). Trump, EU Leaders Reach Deal to Avert Tariff Battle. Retrieved from https://www.wsj.com/articles/trump-eu-leaders-reach-deal-to-avert-tariff-battle-11594725600
- The announcement of the new trade agreement between the European Union and the United States will see a 15% tariff imposed on nearly all EU imports that were previously subject to reciprocal tariffs, as part of the policy-and-legislation aspects of this politics-related general-news story.
- An essential feature of the agreement is the commitment by the EU to make $600 billion in investments in the US by 2029, a significant economic development in the transatlantic trade relations, as mentioned in the general-news story about policy-and-legislation and politics.
