US and EU Reach Trade Agreement
The United States and the European Union have reached an agreement on a trade deal, according to Donald Trump. The announcement was made after the US President met with the European Commission President, Ursula von der Leyen, at one of his golf resorts in Scotland.
Details of the Agreement
After talks in Turnberry, Mr. Trump said that the deal was the "greatest offer of all time" and would be "great for cars" and have a "great influence" on agriculture. The agreement comprises $600 billion in EU investments in the US, and the EU will become a $750 billion market.
Tariffs and Trade
The US will impose a 15% tariff on most EU goods in America, after Mr. Trump threatened a 30% tax. However, the 15% basic rate will not apply to steel and aluminum, for which a 50% tariff will remain in place. Ms. von der Leyen said that the agreement would include 15% tariffs "all the time", and it would help to restore trade between the two large trading partners.
Benefits of the Agreement
Mr. Trump said: "I think it’s great that we made a deal today instead of playing games and maybe not doing any deal at all." He added that the deal would bring stability and predictability, which is important for businesses on both sides of the Atlantic. Ms. von der Leyen said that the agreement would bring stability and predictability, and it would help to replace the trade between the two large trading partners again.
Next Steps
However, there was no decision on the spirits sector, which would have to be reviewed in the coming weeks. The delivery rate was the "best we could get in terms of the car sector". The deal reflects parts of the framework contract between the US and Japan last week.
Background
Mr. Trump had previously said that the main point of contention was "fairness" and referred to obstacles to US exports of cars and agriculture. He had demanded fairer trade with the 27-member block and threatened to impose strong tariffs to achieve this. The EU had prepared counter-measures to €93 billion of US goods in the event that there was no deal and the US had raised 30% tariffs from August 1.
