The US and the European Union have agreed to a 15 percent tariff on goods imports from the EU to the US in their trade agreement. Trump calls it"a good deal for everyone."
The tariff dispute between the European Union and the United States appears to be over for now. The United States and the European Union have agreed to a 15 percent tariff on goods imported from the EU to the United States in their trade agreement. US President Donald Trump announced this on Sunday after talks with EU Commission President Ursula von der Leyen.
"We've reached an agreement. It's a good deal for everyone," Trump said after meeting with EU Commission President Ursula von der Leyen at his golf resort in Turnberry, Scotland. Von der Leyen also called it a"good deal."
Von der Leyen also said the agreement would provide stability."It will provide planning security. That is very important for our companies on both sides of the Atlantic." The 15 percent would apply across all sectors. However, Trump made it clear that the 50 percent tariffs on steel and aluminum would remain in place.
Previously, there had been great anticipation as to whether an agreement would be reached during the talks. Trump had threatened the EU with tariffs of 30 percent on European imports starting August 1. Trump indicated that the EU could not expect less than 15 percent in US tariffs. The US had had a very good relationship with the EU over the years, but it was a one-sided deal that was unfair to the US."And I think both sides want fairness," he added.
The Republican reiterated that the chances of an agreement were 50 percent. There were still some sticking points. He wanted fair trade with Europe. Trump accused the EU of isolating its markets. Once an agreement was reached, it would be in place for years.
Von der Leyen described Trump as a tough but fair negotiator who could make deals."If we succeed, it would arguably be the biggest agreement any of us has ever made," von der Leyen said.
Trump threatened the EU with blanket tariffs of 30 percent if no compromise was reached. The European Union says it wants to eliminate US tariffs on certain sectors—50 percent on steel and aluminum and 25 percent on cars and auto parts.
Trump is concerned about the United States' large trade deficits with numerous other countries and regions, such as China, Japan, and the EU. He wants to use the tariffs to reduce the deficits and offset tax cuts in the United States. Trump has just concluded an agreement with Japan that includes tariffs of 15 percent and numerous other concessions from Japan.
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