In a significant development, US President Donald Trump and European Union President Ursula von der Leyen announced a new trade deal on Sunday in Scotland. The agreement establishes a 15% tariff on most goods traded between the US and the EU, aiming to avert a damaging trade war. The deal brings much-needed clarity for European companies but has sparked mixed reactions across Europe.
Reactions to the Trade Deal
France has sharply criticized the agreement, with some officials calling it a ‘submission’, highlighting internal disagreements within the EU regarding the concessions made. German business leaders have also expressed concern over the increased tariffs, which are more than triple the previous average rate of 4.8% faced by European exporters.
Despite the criticisms, many EU states view the deal as a relief, especially considering the pressure of other global crises, including the ongoing war in Ukraine and economic uncertainties.
Future Prospects and Negotiations
Meanwhile, President Trump has indicated plans to raise global baseline tariffs to between 15% and 20% for countries without trade accords with the US, with the August deadline approaching.
The agreement also exposed some fault lines within the EU, as different member states display varied positions on the trade terms. Trump’s tough negotiating style left an impression during discussions at his Scottish resort, but key tariff details still remain under negotiation.
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