Connect with us

Published

on

Agreement between Washington and Brussels hangs in the balance: tariffs on European goods remain a real threat. EU ready to respond from 7 August

Will tariffs on European goods imported into the United States ultimately be set at 15%? At the moment, no one can say for sure, except Donald Trump. The agreement reached between Brussels and Washington needs the US president’s signature to become effective.

Reasons for a possible no
Why might Trump decide to reject the agreement? Beyond the merits, which would already seem to favour US interests, there remains the possibility of a deliberate confrontation: allowing the tariffs to take effect on 1 August and then accepting European retaliation. This approach would turn the negotiations into an open trade war.

European concessions: a necessary choice
On the other hand, Europe has chosen to give in. After realising that reciprocity had become unrealistic, the goal was to limit the damage. So it accepted a formula that provides for 15% tariffs on European goods sold in the US, compared to minimal or zero tariffs (around 5%) for American products in Europe.

An advantage amplified by the exchange rate
The disparity is even more marked than the numerical difference between the rates suggests: the effect of the exchange rate further strengthens the American position. This makes the situation even more unbalanced and unsustainable for many European companies.

US demands: cars, drugs and chips in the crosshairs
That’s not all. Trump is pushing to further increase tariffs in three key sectors: cars, pharmaceuticals and semiconductors. This is a proposal that Europe strongly rejects, under pressure mainly from Germany, France and Italy, the latter being heavily exposed on the pharmaceutical front.

The EU’s counter-move: 93 billion in counter-tariffs
While waiting for the American decision, Brussels is not standing still. The European Union is ready to launch a €93 billion response, with countermeasures that would take effect on 7 August in the event of no agreement.

The costs of the trade war
The only certainty, for now, is that the final cost of the trade war – whatever form it takes – will fall on businesses and consumers on both sides of the Atlantic.

THE LATEST NEWS

Putin accused of poisoning Navalny, scientific evidence confirmed by the UK

The UK announces evidence confirming the use of a lethal nerve agent against Alexei Navalny while he was detained in...
Read More
Putin accused of poisoning Navalny, scientific evidence confirmed by the UK

Bannon Epstein messages reveal plan against Pope Francis

The Bannon Epstein exchanges revealed by US Justice Department documents detail discussions about efforts targeting Pope Francis. Justice Department documents...
Read More
Bannon Epstein messages reveal plan against Pope Francis

Iran regime mass killing justification claims in leaked video

Leaked footage allegedly shows a regime security strategist defending mass killings during anti-government protests, according to activists Leaked video and...
Read More
Iran regime mass killing justification claims in leaked video

New Epstein revelations and scrutiny on Prince Andrew

Royal family highlights charity and social causes as attention returns to Epstein documents and links to the former duke. New...
Read More
New Epstein revelations and scrutiny on Prince Andrew

Robert F. Kennedy Jr cocaine admission sparks backlash in US

The Robert F. Kennedy Jr cocaine admission during a podcast interview has triggered political backlash and calls for resignation in...
Read More
Robert F. Kennedy Jr cocaine admission sparks backlash in US

UN scandal: Iran elected vice-president of social development despite human rights violations

Iran has been elected vice-president of the UN Commission for Social Development, sparking fierce controversy over its violations of women's...
Read More
UN scandal: Iran elected vice-president of social development despite human rights violations

(Source and photo: © AndKronos)

Di Tendenza/Trending