In a statement issued by the European Commission on the EU-US trade deal struck last Sunday with President Donald Trump in Scotland, the European Commission stated that the deal is not legally binding. The statement also concluded by stating “Beyond taking the immediate actions committed, the EU and the US will further negotiate, in line with their relevant internal procedures, to fully implement the political agreement.”
The deal will have to be approved by the European Parliament and it has to face the scrutiny of MEPs and parliamentary leaders who have already criticised the deal. The deal was also criticised by the French Prime Minister who described it as submissive.
The Commission’s statement did not list the products which are meant to be exempted from US tariffs and details still need to come out. However, the statement also said that semiconductors and pharmaceuticals will also have a maximum 15% US tariff in the future.
Eurochambres stated that the tariffs are not ideal but the deal gives clarity and stability for EU trade access to the US market. The Executive Director of the chamber of the German industries (Deutscher Industrie- und Handelskammertag), gave similar comments saying that although the deal brings “a sigh of relief”, the deal also comes with a price at the expense of the German and European economies.
Although tariffs are ultimately paid by the US consumer, they provide a significant disadvantage to European exports in the US market.
Newsroom
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