US President Donald Trump has announced a large and historic trade agreement between the United States and the European Union. Trump has described this agreement as the 'biggest trade agreement ever', which will benefit both parties.
Key Highlights
- Trump secures what he calls the largest trade deal ever with the EU, averting a tariff surge.
- Deal locks in a 15% tariff on most EU imports and major European investment commitments totaling over $1.35 trillion.
What did Trump say about tariffs on the EU?
On this occasion, Trump stated that the agreement will open all countries' markets while imposing 15% tariffs on the European Union in all areas. Along with this, the EU will increase its purchases of military equipment from America. In the energy sector, the European Union will purchase energy from America worth approximately $150 billion, strengthening both sides' economic cooperation.
What does the deal require the EU to do?
Aside from that, the European Union will invest $600 billion in America, which will boost the US economy. The existing duty system on steel and aluminum will remain in place under this agreement. Within the next two weeks, a new announcement will be made under Section 232 concerning the chips or semiconductor sector, which will be a significant initiative for this industry.
Also Read: India and UK Sign Historic Trade Agreement to Strengthen Economic Ties
How did the EU president describe the agreement?
European Union President Ursula von der Leyen described the agreement as bringing stability and promising better trade relations between the two sides. She also stated that new chips-related policies would be implemented soon.
This trade agreement is viewed as an important step toward reshaping global economic relations and promoting trade cooperation. Both sides hope that this will propel economic growth and stability to unprecedented heights. This agreement will not only strengthen US-Europe relations, but will also pave the way for new opportunities in global trade.
