French Prime Minister Francois Bayrou lamented the EU’s submission to the US demands in its trade deal with the EU saying this is not agreement between free peoples. The US has imposed a 15% tariff at the US border on most EU imports. Some exceptions such as semiconductor equipment have been made but no details have been published so far.
The President of the European People’s Party, Manfred Weber, also expressed his criticism about the deal.
The previous US tariff rate for EU products before Donald Trump took office ranged between 1 and 5% as per World Trading Organisation standards. President Trump implemented a new tariff regime in the US with the aim of increasing government revenue and forcing exporters to the US to manufacture in the US. President Trump threatened the EU with 30% tariffs but the EU chose not to retaliate.
A wide range of European industries are expected to be hit including the car and the machinery industry. Other industries such as agriculture will also be affected but the EU is fighting for an exception on alcoholic products.
The EU also pledged to make more than €1 trillion in purchases of US gas and weapons and investments, although similar pledges made to the US such as the ones made by Saudi Arabia, Qatar and the United Arab Emirates are not backed by written and contractual commitments.
On the other hand, the Italian Prime Minister, Giorgia Meloni gave her comments on the trade deal announcement to the Italian press in Addis Ababa, Ethiopia. Premier Meloni said that she had expected a tariff deal of 10%, slightly above the previous 5% average tariff rate. She also said the 15% US tariff rate is sustainable although discussions need to be held with specific industries which will be hit.
Apart from putting European exports at a disadvantage, US tariffs also pose the risk of increasing inflation according to the Federal Reserve.
Newsroom
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