US to impose 15% tariff on European Union as part of a new trade agreement.
The United States and the European Union (EU) have come to a preliminary trade agreement. As part of this agreement, the US will impose a base tariff of 15% on the majority of goods imported from the EU, which includes vehicles, pharmaceuticals, and electronic products.
US President Donald Trump revealed the agreement during a conference with EU President Ursula von der Leyen in Scotland. According to the terms of the agreement, the EU will acquire energy valued at $750 billion (around ₹64 lakh crore) from the US over the coming three years.
In addition, the EU will put $600 billion (approximately ₹51 lakh crore) into the US. This investment will target sectors such as pharmaceuticals, automobiles, and defense.
The United States is set to implement a 15% tariff on imports from the European Union, marking a significant development in global trade relations. In conjunction with this, the EU has consented to acquire energy products totaling ₹64 lakh crore from the United States as part of an initial agreement between the two economic powers. This arrangement indicates a notable shift in transatlantic trade dynamics, with tariffs being employed as both a bargaining tool and an economic lever. In a potential reshaping of international trade, the US will impose a 15% tariff on specific imports from the European Union, coinciding with a wider agreement that includes substantial energy purchases by the EU, projected to reach a remarkable ₹64 lakh crore in the forthcoming years.
The tariff is anticipated to impact several important European exports, such as industrial goods, automotive components, and certain agricultural items. Officials have stated that the objective is to address the trade deficit and promote fairer practices between both regions.
As a strategic measure, the European Union has concluded a deal to import a significant quantity of energy, mainly LNG (liquefied natural gas), from the United States. This agreement will not only enhance the EU’s energy security but also contribute to decreasing its reliance on other areas, including Russia and the Middle East.
Tariffs on aircraft, components, chips, and agricultural products will be completely eliminated.
EU President Ursula von der Leyen mentioned that both parties have agreed to remove tariffs on aircraft, their components, semiconductor equipment, select agricultural goods, and generic medications entirely. However, the tariffs of 50% on steel and aluminum will stay in effect.
Despite the agreement being reached, various technical details still require resolution. The deal also needs to be approved by the EU Parliament and its member states.
After seven months of negotiations, the EU and the US concluded their tariff discussions following Trump’s threat of a 30% tariff. The EU had not been making significant concessions until that point, which led to a softening of their position and the eventual agreement.
The European Union stands as the world’s third-largest economy and consists of 27 countries in Europe. The trade between the US and the EU amounts to roughly $3.5 billion each day. Meanwhile, Mexico continues to be America’s largest trading partner.
