The World Today
The tariff reduction on automobiles is conditional on the lifting of taxes on American agricultural products and food.
BRUSSELS, 21 (EUROPA PRESS)
The European Union finalized a formal agreement with the United States on Thursday for a general maximum tariff of 15% on its exports, which will also apply to sectors such as pharmaceuticals and semiconductors. In the case of vehicles, the reduction from the current 27.5% is conditional on improved access to American agricultural products and food.
In this way, both blocs put in writing in a joint statement the political agreement reached in Scotland three weeks ago between EU President Ursula von der Leyen and US President Donald Trump. The text, although not legally binding, specifies the terms of the agreement and is perceived as a roadmap for trade policy between Washington and Brussels.
The EU president praised the agreement for strengthening transatlantic relations and providing "predictability" for businesses and consumers, as well as bringing greater stability to "the world's largest trade association."
"This is a very important strategic agreement. We fully support it and are committed to fulfilling it. I'll say it clearly: the alternative, a trade war with sky-high tariffs and political escalation, benefits no one," Trade Commissioner Maros Sefcovic stated at a press conference in the EU capital, where he argued that the 15% limit is a ceiling that includes all trade fees and surcharges.
In the automotive sector, European cars and components will benefit from a reduction in tariffs, which until now stood at 27.5%, to 15%. This measure is conditional on Washington granting preferential access to its market by eliminating tariffs on US fishery and agricultural products, including nuts, dairy products, fresh and processed fruits and vegetables, processed foods, seeds, soybean oil, and pork and bison.
According to Sefcovic, EU services are working to present these legislative proposals this month, so the European executive says it has assurances from Washington that the 15% tariffs on cars will be applied retroactively from August 1.
"This is good news for our automotive industry, which has suffered significant economic losses in recent months ," said the Slovak commissioner, who has led negotiations with the United States in recent months.
Brussels also reiterates the Trump administration's commitment that pharmaceuticals, semiconductors, and timber will not receive tariffs exceeding 15%. This ensures that this maximum will also apply to these sectors, currently under investigation by the US Department of Commerce.
WINES AND SPIRITS, OFF THE LIST
Zero or very low tariffs of 2.5% will apply from September to non-available natural resources such as cork, all aircraft and aircraft parts, generic medicines and their ingredients, and chemical precursors.
European wine and spirits are currently excluded from the list of products targeted in the joint statement, despite Europe's hopes for a favorable deal for these products. In any case, the EU and the United States will continue negotiating more sectors and products sensitive to their economies to expand this list of minimum tariffs, including alcoholic beverages.
"Tariffs on wine, spirits, and beer were one of the EU's most important interests. Unfortunately, we were unable to include this sector," Sefcovic admitted, noting that the door is not closed to including these products in the future.
Regarding steel, aluminum, and their derivatives, the joint statement consolidates the European and American intention to cooperate to implement a quota system for trade in a certain amount with preferential treatment, although the written agreement does not provide further details on this mechanism.
NON-BINDING COMMITMENT ON INVESTMENTS IN THE U.S.
Other elements of the agreement that generated the most controversy include the commitments to European purchases of US energy worth $750 billion, specifically crude oil, liquefied gas, and nuclear energy, and to invest $600 billion in the US economy during the remainder of the US president's term.
The formal agreement includes these points among its terms, but adopts European language and refers to "intentions" and "expectations" regarding acquisitions and investments, after Brussels has repeatedly reiterated that the figures are in no way binding.
Just a week after closing the political agreement with Von der Leyen, Trump threatened to raise tariffs on all European products to 35% if the bloc failed to comply with the agreed-upon investments.
Regarding the purchase of military equipment from the United States, the statement refers only to the EU's intention to substantially increase its acquisition of US-made military equipment without providing figures, although it emphasizes the shared priority of deepening transatlantic defense industrial cooperation.
The US side has obtained concessions from Brussels, such as easing the implementation of the carbon border adjustment mechanism and reviewing corporate sustainability due diligence laws to ensure they do not impose "undue restrictions on transatlantic trade."
Regarding the Digital Services regulation, the European Trade Minister argued that these issues were left off the negotiating table. "We have made it very clear that regulatory autonomy is absolutely important to us," he emphasized.
The agreement with Washington came before Trump's August 1 deadline for imposing widespread 30% tariffs on European products. In general terms, the EU accepts a "flat tariff" of 15% on all imports, including areas that until now had zero tariffs, such as the pharmaceutical sector, semiconductors, or agricultural products, while it has not announced any response measures that would make these tariffs reciprocal.
