The framework agreement on customs between the US and the EU is much worse than what Europe had hoped for just a few weeks ago, analyst Varg Folkman tells NTB.
– It's not a good deal. Just a few weeks ago, people had begun to accept that they would have to settle for a 10 percent basic tariff, which was far from what they had hoped for, says Folkman, who is affiliated with the think tank European Policy Centre (EPF).
He believes the agreement – which is currently only a framework agreed upon by the two leaders Donald Trump and Ursula von der Leyen – is in the same mold as the one the US has entered into with Japan. The agreement must also be approved by the EU countries.
“It seems that 15 percent also applies to cars exported to the US. If there were to be any winners here, it would have to be the European car industry,” he says.
Folkman believes the agreement involves a massive deterioration of the current situation, but that Europe is not very keen on a tariff war across the Atlantic.
– The EU has gone to great lengths to avoid it. Now the hope is to get some peace – but that is questionable. When Trump smells blood in the water, he has a habit of coming back for more, says the analyst.
He says the result of the conversation between Trump and Von der Leyen is not good news for Norway either.
– It doesn't bode well for Norway. We have little to offer. This is not a negotiation on Trump's part, he is just dictating the demands.
