New trade agreement between America and European Union According to some experts, the import of goods from the European Union countries will bring the tariff to its highest level to its highest level and damage the economic growth of the trading blocks.
“This is an asymmetric and unbalanced deal,” Economists said in a report with the Investment Bank Society Ganerel. The European Union neither decided to take vengeance nor to increase its tariffs, and even to reduce them. The European Union agreed to a bad deal rather than an increase in risk trade war. ,
According to Investor Advisory firm Capital Economics, the average tariff on US imports from the European Union will increase from 1.2% to 17.5% in 2024. This will reduce the annual GDP of the European Union by 0.2%, investment advisory firm forecast.
The European Union countries ship more than $ 300 billion in America annually, accounting for more than 20% of the total American imports. Mexico ranks second in American’s trade partners in American imports, while Canada accounts for 11% (see chart below).
The deal, declared by President Trump and European Commission Chairman Ursula von Der Leyen on Sunday, imposes 15% US tariffs on most European Union imports, while 27 member countries of the Union will not have any tariffs of American goods exported. According to Goldman Sachs analysts, first, US exports for the European Union faced an average tariff of about 1%.
The European Union promised to buy energy of $ 750 billion from the US, which was more than $ 80 billion per year, and to invest $ 600 billion by 2028.
According to the Trump administration, the trade agreement will promote Americans by increasing access to the vast market of the European Union and by supporting the American manufacturing sector.
The White House said on Monday on Monday, “This huge deal will help American farmers, rankers, fishermen and manufacturers to increase American exports, expand business opportunities and reduce the goods trade deficit with the European Union.” Fact sheet About the treaty.
The White House did not immediately respond to an request for additional comments.
Reduce uncertainty
Although the agreement rapidly enhances American tariffs, economists stated that the deal will also help reduce some uncertainty about business relations with a major trading partner. Perhaps most important, it is better than the option that Mr. Trump threatened to slap 30% tariff on European Union imports,
More widely, with the European Union deal and the Framework Agreement of Trump Administration Japan last week – Both determined 15% in the form of baseline tariffs – it can also help pave the way for trade agreements with Canada, Korea, Mexico and other countries, including experts, including major areas such as autos, said.
,[C]Expectations were noted that we had a few weeks ago, especially when pharmaceuticals and semiconductors could be subject to high tariffs, it seems that the deal is better than fear, “Mitchell Martinez, Economist of Social Ganerael, the economist of Europe, told CBS Manivach.
According to Goldman Sachs, European auto exports will face 15% levy below 25%. Von Der Leyen also stated that the US would eliminate tariffs on some products, including aircraft and parts, semiconductor manufacturing gear, natural resources, some agricultural products and some chemicals and some chemicals and generic drugs. Similarly, the European Union will eliminate tariffs on those products.
Neither the United States nor the European Union has released the details of the treaty, and some industries are expected to continue to advocate. For example, Union Italian Winnie, an Italian trade group that represents the winners, said statement The AA $ 371 million for exporters will be a $ 371 million hit for exporters as a result of 15% tariff on European Union imports on Monday.
The group president Lamberto Frescobbaldi said in a statement, “Now we are calling the Italian government and the European Union to consider appropriate measures for the protection of an area, which has increased considerably thanks to American buyers,” Lamberto Frescobaladi said in a statement that the deal was resolving the minimum uncertainty. ,
According to the group analysis, a bottle of Italian liquor that was earlier retail for $ 11.50 in the US will now cost around $ 15 under the new tariff agreement.
The German Association of the German Automotive Industry (VDA), which represents the German vehicle manufacturers, also said that 15% of the US tariffs on the country’s automotive products will harm its car manufacturers, while given that the new tariff rate 25% is facing 25% Automobile Lewis from the European Union countries from April 1.
Despite the recent trade deals with the Trump administration with the European Union, Japan, UK and many other Asian countries, the US still faces a self-known August 1 time limit to reach agreements with Canada, Mexico, Korean other major trading partners.
