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Local France
2 days ago
- Business
- Local France
'A dark day': What we know so far about the EU-US trade deal
EU chief Ursula von der Leyen clinched an agreement Sunday with US President Donald Trump to avoid crippling tariffs from hitting the bloc, with both leaders hailing a "good deal". The stakes were high with a looming August 1st deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent -- but the deal will not satisfy everyone. Here is what we know so far: What did the EU-US agree? Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods -- the same level secured by Japan this month -- with bilateral tariff exemptions on some products. The deal will bring relief for the bloc's auto sector, employing around 13 million people -- and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. "Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent," said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain "costly" for German automakers, "but it is manageable", said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. Advertisement The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries -- which recently pledged to ramp up their defence spending within NATO -- would be purchasing "hundreds of billions of dollars' worth of military equipment". Are there exemptions? Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals -- a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. Advertisement "Between us, tariffs will be cut and a quota system will be put in place," she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. What happens next? The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a "framework" agreement. "Details have to be sorted out, and that will happen over the next weeks," she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. "This is something which has to be sorted out in the next days," von der Leyen said. Advertisement What has the reaction been around Europe? Well let's start in France where the French PM was outspoken in his criticism of the agreement. PM Francois Bayrou slammed the trade deal between the United States and the European Union as a "dark day" and tantamount to "submission." "It is a dark day when an alliance of free peoples, united to affirm their values and defend their interests, resorts to submission," said Bayrou in a post on X. His counterpart in Italy Giorgia Meloni was more positive. She welcomed the trade deal on Monday, saying it had avoided "potentially devastating" consequences. Meloni -- an ally of US President Donald Trump on many issues -- had earlier this month warned against a "trade war within the West." Speaking at a summit in Ethiopia, Meloni said a "trade escalation between Europe and the United States would have had unpredictable and potentially devastating consequences". German Chancellor Friedrich Merz on Sunday welcomed the trade deal, which he said avoided "needless escalation in transatlantic trade relations" -- even as many industries criticised it. "We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade," he said in a statement released soon after the deal was announced.
Local Germany
2 days ago
- Business
- Local Germany
What we know so far about the EU-US trade deal
The stakes were high with a looming August 1st deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent -- but the deal will not satisfy everyone. Here is what we know so far: What did the EU-US agree? Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods -- the same level secured by Japan this month -- with bilateral tariff exemptions on some products. The deal will bring relief for the bloc's auto sector, employing around 13 million people -- and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. "Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent," said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain "costly" for German automakers, "but it is manageable", said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. Advertisement The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries -- which recently pledged to ramp up their defence spending within NATO -- would be purchasing "hundreds of billions of dollars' worth of military equipment". Are there exemptions? Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals -- a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. Advertisement "Between us, tariffs will be cut and a quota system will be put in place," she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. What happens next? The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a "framework" agreement. "Details have to be sorted out, and that will happen over the next weeks," she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. "This is something which has to be sorted out in the next days," von der Leyen said.
Japan Today
3 days ago
- Business
- Japan Today
What we know so far about the EU-US trade deal
The EU-US trade deal means the 27-country bloc will face a baseline US levy of 15 percent - instead of a threatened 30 percent By Raziye Akkoc EU chief Ursula von der Leyen clinched an agreement Sunday with US President Donald Trump to avoid crippling tariffs from hitting the bloc, with both leaders hailing a "good deal". The stakes were high with a looming August 1 deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent -- but the deal will not satisfy everyone. Here is what we know so far: What did EU, US agree? Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods -- the same level secured by Japan this month -- with bilateral tariff exemptions on some products. The deal will bring relief for the bloc's auto sector, employing around 13 million people -- and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. "Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent," said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain "costly" for German automakers, "but it is manageable", said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries -- which recently pledged to ramp up their defence spending within NATO -- would be purchasing "hundreds of billions of dollars' worth of military equipment". Are there exemptions? Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals -- a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. "Between us, tariffs will be cut and a quota system will be put in place," she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. What happens next? The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a "framework" agreement. "Details have to be sorted out, and that will happen over the next weeks," she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. "This is something which has to be sorted out in the next days," von der Leyen said. © 2025 AFP
Int'l Business Times
3 days ago
- Business
- Int'l Business Times
What We Know So Far About The EU-US Trade Deal
EU chief Ursula von der Leyen clinched an agreement Sunday with US President Donald Trump to avoid crippling tariffs from hitting the bloc, with both leaders hailing a "good deal". The stakes were high with a looming August 1 deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent -- but the deal will not satisfy everyone. Here is what we know so far: Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods -- the same level secured by Japan this month -- with bilateral tariff exemptions on some products. The deal will bring relief for the bloc's auto sector, employing around 13 million people -- and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. "Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent," said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain "costly" for German automakers, "but it is manageable", said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries -- which recently pledged to ramp up their defence spending within NATO -- would be purchasing "hundreds of billions of dollars' worth of military equipment". Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals -- a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. "Between us, tariffs will be cut and a quota system will be put in place," she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a "framework" agreement. "Details have to be sorted out, and that will happen over the next weeks," she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. "This is something which has to be sorted out in the next days," von der Leyen said.
Yahoo
16-04-2025
- Business
- Yahoo
Mackerel and missiles: EU-UK defence deal snags on fish
Cod and herring are normally more likely to be on the dinner menu than the negotiating table at European security talks. Yet, mackerel and missiles have become entangled in a tense diplomatic dance between London and Brussels that is causing friction ahead of a landmark EU-UK summit next month. Both sides are hoping a defence and security pact will be the highlight of the May 19 meeting, as Donald Trump's return to the White House casts doubt over the US commitment to NATO and European protection. The London summit is also meant to turn the page on years of post-Brexit rancour, as part of a "reset" in relations vowed by British Prime Minister Keir Starmer. But captained by France, some EU countries are pushing to link the opening of defence talks to successful negotiations in other areas, with fishing a major sticking point. "A very large majority of member states are in favour of signing this partnership during the summit," said a diplomatic source. "France's position is more tied to its own issues". The commission is due to update member states on the negotiations on Wednesday. - Bone of contention - Fishing, one of the thorniest points in Brexit negotiations, was always due to make a comeback on the cross-Channel diplomatic agenda, as a deal granting European boats access to British waters is to expire in 2026. France and other EU countries on the North Sea would like the current agreement rolled over -- with London so far reluctant. Even though fishing represents a fraction of Britain's economy, it still stirs passions as politicians rally behind the island's rich maritime history. Caving to French requests could play out poorly as England gears up for local elections on May 1, said Sebastien Maillard, a special adviser to the Jacques Delors Institute, a think tank. On the other hand, Paris sees an extension as a needed sign of goodwill from Britain, which wants to renegotiate in its favour other aspects of a post-Brexit trade deal with the EU to help fire up a stagnant economy, he said. "We very much welcome the UK's desire to move closer to Europe after deciding to leave five years ago. We can now build a positive agenda that is in our mutual interest in a changing strategic and economic context," said a French diplomat. "We look forward to hearing more about the commitments the British are prepared to make in this regard." - 'A bit of impatience' - The UK has much to gain from a security deal that would open the door for British defence companies to benefit from European programmes to boost weapons production. London is also eyeing a new veterinary pact to smooth exports of British agricultural goods. So far however, a proposal floated by the European Commission -- a mobility programme for under-30s -- has been ruled out on the British side. And there is of course the matter of fish. "There is a bit of impatience on the European side to know what the UK is ready to offer. Because right now, it's not offering anything," said Maillard. That argument is endorsed by several European capitals favouring a so-called "package" approach to negotiations. "The French are certainly not alone... they have plenty of support," said another EU diplomat. - 'Make it work' - In other European capitals, though, there is alarm at the prospect that progress on defence cooperation could be slowed down by fraught negotiations over fishing at a time where Europe might have to confront a belligerent Russia on its own. "I don't see France changing its tune. (It's) very frustrating," said a third EU diplomat. With just over a month to go, time is running short to thrash out the details of a security and defence pact in time for May's summit. This makes it more likely the event will mark the launch of negotiations, rather than deliver a substantial deal outright. Yet, even that could be considered a success given the acrimony that followed Britain's exit from the EU club. "It's evident to all the 27 member states that this summit is of undeniable importance, symbolically and strategically," said the first diplomat. "So there is a clear will to make it work." A spokesperson said the UK government was working with the EU to identify areas for deeper cooperation but had been clear that "there will be no return to freedom of movement, the customs union or the single market." London declined to provide "a running commentary on talks", just as Starmer, speaking to journalists after a Paris summit in March, quipped back: "I am going to resist the temptation to start talking about fish." ub-del/ec/giv-jj
