The United States and the European Union have reached an agreement on a new trade deal that entails significant changes in mutual trade and energy cooperation.
This is reported by Business • Media
Key Provisions of the New Trade Agreement
According to the signed agreement, starting from August 1, a 15% tariff will be imposed on most exports from the EU to the US, including cars, semiconductors, and pharmaceutical products. In return, the European Union has agreed to gradually phase out imports of Russian energy resources and purchase American energy products worth $750 billion. Additionally, the EU plans to invest an extra $600 billion in the US for the development of energy and industrial infrastructure.
Preferential Terms for Strategic Sectors
The agreement also includes zero tariffs for a number of strategic goods, such as aircraft and their components, selected chemicals, semiconductor manufacturing equipment, and certain agricultural products. The list of such goods is expected to be expanded in the future.
At the same time, tariffs on European steel and aluminum remain at 50%. Aerospace products are temporarily exempt from tariffs. The issue of tariffs on European wines and spirits is still under negotiation and will be resolved soon.
The European Commission stated that the agreement provides “stability and predictability” in trade.
On the financial markets, the news of the agreement’s signing elicited a positive reaction: S&P 500 futures rose by 0.4%, while contracts on European stocks increased by 1%. The euro also strengthened its position against the US dollar.