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US PRESIDENT Donald Trump announced that he had reached a deal with EU. This agreement ends several months of tariff talks.
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.’
Deal will allow imports of most EU products at a rate of 15%, instead the 30% tariff that the president had threatened to apply if the negotiations failed on the 1st August.
Trump said, “This is really the biggest trade partnership in the World so we should try it,” he said again before the meeting.”
The EU agreed to continue spending tens and tens billions more dollars in the future on US energy products, military equipment and other items.
After further negotiations, the export tariff of 50% on steel, aluminium and copper will be retained, but it could possibly be replaced with a quota-based system.
Deal with Trump by the UK creates divisions on the island of Ireland. Northern Ireland traders can now export to the US for a 10% tariff.
This could lead to difficult diplomatic discussions regarding the island’s stability, as described in the Good Friday Agreement.
Simon Harris, Ireland’s deputy premier, said that “we will be examining the agreement and its full implications for Irish businesses and the Irish economy, including the All-Island Economy.”
There is still uncertainty over the sectors that will be affected, such as pharmaceuticals. Trump initially said they would not be included, but a senior US government official later confirmed that they would.
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.
Many European leaders welcomed the agreement for restoring stability to trade relations, despite the fact the new tariffs were three times more than the average pre-Trump rate of 4.8%.
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