US, EU agree on 15% tariffs, aver hikes

KABUL (Pajhwok): The United States and the European Union have reached new trade agreement just days before the US was scheduled to implement higher tariffs on European imports, easing rising tensions between the two economic powers

The deal was finalized following a meeting on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen at Trump’s Turnberry golf resort in Scotland, according to Al Jazeera.

Under the agreement, a 15 percent tariff will be broadly applied to European goods, including automobiles. This replaces the previously imposed 25 percent duty—on top of a 2.5 percent base rate—that had been in place since April.

The new rate represents a significant reprieve for Europe’s auto industry, which had been bracing for additional hikes.

“It was a very interesting negotiation. I think it’s going to be great for both parties,” President Trump told reporters, describing the pact as the “biggest deal ever made.”

Von der Leyen praised the agreement as a step toward economic stability and mutual growth. “It brings stability and predictability—something very important for our businesses on both sides of the Atlantic,” she said.

The deal, reached just days before a planned 30 percent tariff on EU imports was set to take effect on August 1, is the most comprehensive trade agreement announced during Trump’s presidency. It follows earlier, smaller deals with Japan, the United Kingdom, Indonesia, Vietnam, and the Philippines, as well as a temporary 90-day trade truce with China.

The European Union remains the US’s largest trading partner. Last year, two-way trade in goods and services between the two economies approached $2 trillion.

PAN Monitor/sa