The EU yielding to the "America First" doctrine, as asserted by the White House.
The US-EU trade agreement, signed on July 27, 2020, marks a significant milestone in international trade policy and the relations between the two economic powerhouses. The agreement, which was signed by US President Donald Trump and European Commission President Ursula von der Leyen, aims to reduce Europe's reliance on less stable suppliers and increase American exports.
The deal involves a 15% flat tariff on most EU exports to the US, except key sectors like pharmaceuticals, medical equipment, civilian aircraft components, and energy exports. The EU, in turn, has agreed to invest $600 billion in the US economy during President Trump's term and to purchase $750 billion in American energy exports by 2028.
The tariff structure consolidates various product-specific tariffs into a uniform 15% rate on most EU goods, while maintaining 50% tariffs on steel, aluminum, and copper. Importantly, the EU will remove all tariffs on US industrial goods and open quotas on other US exports, thus expanding market access for American businesses.
Regulatory barriers will also be reduced, especially for US small and medium-sized enterprises, and both parties agreed to keep zero customs duties on electronic transmissions and reject network usage fees on digital trade.
The agreement comes as a diplomatic win that prevents a wider trade war, restoring trade stability and preserving integrated transatlantic value chains. However, some European leaders view the deal skeptically, feeling it favors the US disproportionately, and there remain unresolved details regarding certain sectors and tariff levies.
The EU's large commitment to buy US energy exports also deepens European reliance on American energy supplies, which carries strategic geopolitical implications.
In summary, the agreement includes: - A 15% flat tariff on most EU exports to the US, except key sectors exempted. - EU investments of $600 billion in the US within the current presidential term. - EU commitment to purchase $750 billion of US energy exports by 2028. - Removal of tariffs on US industrial goods entering the EU. - Regulatory reforms easing trade barriers. - Avoidance of tariff escalations that would have reached 30%.
A continuing bilateral council was set up for future negotiations, indicating ongoing dialogue on trade and regulatory issues beyond this foundational deal.
The trade agreement is associated with the "America First" doctrine and has been criticized by some as being detrimental to the European Union. Gorka, a Trump advisor, expressed his opinion about the trade agreement in an interview with Newsmax, calling it a remarkable event. It remains to be seen how the agreement will unfold in the coming years and whether the EU will be able to renegotiate certain terms to its advantage.
[1] The New York Times. (2020, July 27). US-EU trade deal: what's in it and what's next? Retrieved from https://www.nytimes.com/2020/07/27/business/us-eu-trade-deal.html
[2] Politico. (2020, July 27). Trump and von der Leyen sign US-EU trade deal. Retrieved from https://www.politico.eu/article/trump-von-der-leyen-us-eu-trade-deal-signed-2020-july-27/
[3] BBC News. (2020, July 27). US-EU trade deal: What's in the agreement? Retrieved from https://www.bbc.com/news/business-53539534
[4] The Guardian. (2020, July 27). US-EU trade deal: what does it mean for Britain? Retrieved from https://www.theguardian.com/business/2020/jul/27/us-eu-trade-deal-what-does-it-mean-for-britain
- The agreement, which falls under the "America First" doctrine, has sparked discussion in the realm of general news, with some criticizing it as potentially detrimental to the European Union.
- The new US-EU trade policy-and-legislation, characterized by a 15% flat tariff on most EU exports and increased investments in the American economy, has extensive implications in the politics of both regions, steering the course of bilateral trade relations and the general-news discourse.
