Josie Sharp
US PRESIDENT Donald Trump has announced a deal with the EU, putting an end to several months of tariff negotiations.
After a 40-minute meeting at his Turnberry golf resort in Scotland, the European Commission chief, Ursula von der Leyen, said ‘we have a deal.’
The deal will impose a 15% import on most EU goods, avoiding the 30% tariff rate the president threatened to impose on 1 August if negotiations failed.
Trump said: “This really the biggest trading partnership in the world so we should give it a shot,” he had said before the meeting again.”
The agreement involved the EU’s commitment to spend tens of billions of dollars more on US energy products and military equipment in the future.
While most EU exports will face a 15% tariff, the 50% export rate on steel and aluminium will remain, but could possibly be replaced by a quota system after further negotiations.
The deal creates a division on the island of Ireland, as traders in Northern Ireland can export to the US on a 10% tariff rate, as part of the UK’s deal with Trump.
This may lead to challenging diplomatic discussions about ensuring island-wide stability as outlined in the Good Friday Agreement.
Ireland’s deputy prime minister, Simon Harris, said: “Over the coming days, we will be examining what has been agreed and the full implications for Irish business and the economy, including any implications for the All-Island economy.”
Uncertainty remains over which sectors will be affected by the tariffs, like pharmaceuticals, after Trump said they would be excluded, only for a senior US official to later confirm they were covered.
According to on der Leyen, ‘all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials’ would not face any tariffs.
Several European leaders have welcomed the deal for restoring stability to the trade relationship, even though the new tariff is three times higher than the pre-Trump average of 4.8%.
Click here to read more Spain News from The Olive Press.
