ISLAMABAD: US President Donald Trump introduced on Sunday that Washington and the European Union have reached an extended-awaited alternate settlement, simply days earlier than a primary tariff closing date.
Trump made the assertion following talks with European Commission President Ursula von der Leyen at his Turnberry golfing inn in Scotland.
Deal Avoids Major Tariffs—for Now
“We have reached a deal. It’s a good deal for anybody,” Trump informed reporters, with von der Leyen echoing the sentiment.
The deal comes just in advance of an August 1 deadline, after which the United States had threatened to impose a 30% tariff on EU goods if no agreement become reached.
Instead, the new baseline levy on EU exports will reportedly be 15%, mirroring the fee agreed with Japan, but with positive exceptions for aircraft and spirits—not wine.
According to EU officials, the agreement still needs approval from all 27 member states, who’ve been briefed on its contents.
Key sectors which includes prescribed drugs and semiconductors may also face the 15% levy, while a compromise on steel may additionally allow constrained obligation-free imports.
The EU may even growth purchases of US liquefied herbal fuel and make other investment pledges underneath the settlement.
Auto Industry and Public Backlash
The deal’s effect on the car quarter stays uncertain, a key problem for Germany and France, each of that have seen their carmakers go through underneath beyond US-imposed tariffs.
Although the 15% fee is substantially better than the average pre-current tariff of four.Eight%, it displays cutting-edge ranges and can provide balance amid escalating exchange threats.
Trump, who has warned dozens of nations to strike offers or face price lists by August 1, insisted that no further extensions would take delivery of.
However, a latest Gallup poll suggests his approval score has dipped to 37%, reflecting public skepticism over his aggressive exchange method.
Should the deal fall apart, the EU is prepared to impose retaliatory tariffs on $109 billion worth of US goods starting August 7.
