EU and US Reach Trade Deal with Tariffs Set at 15% for Most Exports

A package of counter-tariffs on goods worth €93 billion remains ready for use if needed.

The agreement also includes a commitment for the EU to purchase US liquefied natural gas worth $750 billion.

For European steel and aluminum, however, US tariffs remain at 50%, a point of contention in the negotiations.

Key Provisions

The deal has been criticized by some, including Bernd Lange, chair of the European Parliament's trade committee, who called it 'not good'.

Lange reported that Trump had linked the trade negotiations to questions about Europe's ability to defend Ukraine independently.

The agreement avoids a feared trade war where both sides would impose increasingly drastic tariffs on each other.

It includes an expiration date of December 31, 2029, with a review of its economic impact on Europe scheduled for that time.

Criticism and Compromise

The deal has been framed as a compromise, with both sides making concessions to avoid further escalation.

Critics worry that the agreement favors US interests and could have negative long-term effects on European industries.

Supporters argue that it provides stability and prevents the economic damage that a full-blown trade war would cause.

The negotiations were marked by tension, with Trump's unpredictable demands adding complexity to the process.

Future Implications

The final agreement reflects a balancing act between protecting domestic industries and maintaining transatlantic trade relations.