What the EU and the USA agreed on

What the EU and the USA agreed on

By Dr. Kyle Muller

After a long struggle, the EU and the USA have agreed in the customs dispute. But what exactly? How big are the EU confessions to Trump, what changes compared to the status quo – and what is still unclear? Questions and answers.

The European Union and the United States agreed in the customs dispute at the weekend. Not all details of the agreement are yet clear. An overview of what has been announced so far.

What have the EU and the USA agreed on?

The 30 percent tariffs on European goods previously planned by the USA are off the table, according to both sides. But the deal now made also provides for considerable surcharges: at least 15 percent should in future be important to most goods from the EU. A significant increase compared to the status quo: Since April 9, the USA has already raised a basic customs set of ten percent on EU imports.

Before Donald Trump took office as US President, the average of the USA on EU goods in practice was only about one percent, the EU said.

On the other hand, 15 percent for some industries are an improvement compared to the existing tariffs. Trump had occupied cars with additional tariffs of 25 percent, so that a total of 27.5 percent tariffs recently occurred.

Are there any exceptions?

Yes. In the future, no taxes will be due on a limited number of goods. According to EU Commission President Ursula von der Leyen, this includes, for example, aircraft, certain chemicals, agricultural products and critical raw materials.

Are 15 percent the new upper limit?

Von der Leyen emphasized: “These 15 percent represent a clear upper limit. No stacking. Everything included.” In addition, the agreement is to be used as a starting point to reduce the tariffs again in the future.

On the other hand, according to Trump, 50 percent tariffs are still on steel and aluminum. Apparently there was an agreement on customs subsequences. According to information from EU circles, however, certain quantities should be excluded, as was the case before Trump’s taking office.

Customs and aluminum have long been a dispute in the trade between the USA and the EU. The first government under Trump had already significantly increased the tariffs on steel and aluminum in 2018 – to 25 percent for steel and ten percent for aluminum. In his second term, Trump raised the tariff again, most recently to 50 percent for both materials.

How good is the agreement in international Comparison?

Hungary Prime Minister Orban criticized that the United Kingdom had received a better deal. In fact, the agreement between the United States and the United Kingdom provides for a basic customs set of ten percent from May – this is significantly less than 15 percent on EU goods. The auto tariffs were also negotiated to ten percent for up to 100,000 vehicles per year – according to the industry association “Society of Motor Manufacturers and Traders” (SMMT), this corresponds approximately to the total amount of exported British cars to the USA of 2024.

Most recently, the G7land Japan had also agreed on 15 percent base tariffs. Japan’s trading volume with the USA is significantly lower than that of the EU. The small states of Indonesia (19 percent) and Vietnam (20 percent) have agreed higher basic tariffs.

Were there any other concessions on the EU side?

The EU assured Trump to buy US energy worth $ 750 billion until the end of its term of office. According to von der Leyen, liquid gas (LNG), oil and nuclear fuel from the United States should fill the gaps that will arise after the planned complete waiver of Russian gas and oil.

In addition, the EU Trump promises to invest another $ 600 billion in the United States in the coming years.

Is the result carved in stone?

Not all details have yet been negotiated, that of the Leyen said after the deal was announced. The EU wants to continue the talks, for example to the steel and aluminum tariffs. According to the Reuters news agency, there is still no agreement with spirits.

In addition, the agreement must still be accepted unanimously by the EU heads of state and government. There was already the first criticism here, for example from Hungary Prime Minister Viktor Orban. “President Donald Trump has eaten Commission President of Leyen for breakfast,” said Orban.

The United States is also open to increase tariffs in the future if the European countries should not keep their investment commitments, a high-ranking representative of the US government told reporters on Sunday evening, as Reuters reported.

With information by Alina Leimbach, ARD finance editor

Kyle Muller
About the author
Dr. Kyle Muller
Dr. Kyle Mueller is a Research Analyst at the Harris County Juvenile Probation Department in Houston, Texas. He earned his Ph.D. in Criminal Justice from Texas State University in 2019, where his dissertation was supervised by Dr. Scott Bowman. Dr. Mueller's research focuses on juvenile justice policies and evidence-based interventions aimed at reducing recidivism among youth offenders. His work has been instrumental in shaping data-driven strategies within the juvenile justice system, emphasizing rehabilitation and community engagement.
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