EU and US finalize trade deal, agree on protection from global steel production oversupply
The United States and the EU have agreed on a new framework for mutual, fair and balanced trade, which is an important step towards strengthening one of the largest economic partnerships in the world.
The US-EU trade agreement is aimed at expanding the sales market. access, lower tariffs, and attract large investments in energy, technology, and defense, while ensuring fair competition and reliable supply chains, according to a joint statement released by both sides.
The United States and the EU have agreed on a new framework for mutually beneficial, fair and balanced cooperation. This marks a significant step towards strengthening one of the largest economic partnerships in the world. The U.
S.-EU trade agreement aims to expand market access, reduce tariffs, and attract major investments in energy, technology, and defense, while ensuring fair competition and reliable supply chains, according to a joint statement released by both sides.
Strategic importance
The economic relations between the US and the EU already support mutual investments in the amount of 5 trillion dollars. This new structure reinforces the commitment of both sides to increase the sustainability of the supply chain, accelerate the transition to green and digital technologies, and ensure transatlantic economic security from non-market practices.
Key elements of the US-EU trade agreement
1. Tariff reduction and market access
The EU has committed to abolish tariffs on all US manufactured goods, while the US has committed to apply a higher MFN (most favored nation) tariff rate or a 15% tariff on goods of European origin.
2. Section 232 tariffs and cars
U.
S. tariffs on pharmaceuticals, semiconductors, and lumber are capped at 15 percent. The tariffs on cars and auto parts provided for in Section 232 will not apply to EU goods subject to an MFN tariff of 15% or higher.
3. Steel, aluminum and excess capacity in the market
The United States will impose a 15% import tariff on most EU goods, but a 50% tariff on steel, aluminum and their derivatives from the EU, with the intention of considering the possibility of introducing a tariff rate for exports from the EU and combating the global oversupply of steel and aluminum.
According to the European Steel Manufacturers Association (EUROFER), a 15% tariff on all types of products means an additional huge burden on steel, as many types of exports from the EU, such as machine tools and vehicles, are metal-intensive. Commenting on the deal, Axel Eggert, CEO