Running for Trump Administration and European Union A business deal The time frame of August 1 of the White House, economists, warned that a rapid growth in tariffs could increase costs for consumers and businesses.
As the clock goes down, a series of compromising with other American trading partners in recent times raised hopes of avoiding potentially harmful trade war with Europe, the experts said that A. Deal with japan The European Union declared on Tuesday can serve as a template for a deal.
America has recently announced the outline of trade deals With ChinaIndonesia, Philippines And UKHowever, with several details, it is still being finalized.
For consumers and businesses on both sides of the Atlantic, there is a lot on the outcome of business talks. One deal absent, President Trump has threatened to import from 27 member countries of the European Union with 30% tax. In creating potential counterents, the European Commission has stated that it would impose tariffs on more than $ 100 billion US goods starting on August 7, AFP on Wednesday.
The conversation is going on and the trade war of a US-European Union can still be avoided. Citing the European Union diplomats, AFP also said that trading blocks
The White House did not immediately answer questions about the status of the interaction with the European Union, including whether the Trump administration expects to reach a business deal by 1 August deadline.
President Trump on Tuesday Hit a business deal With Tokyo which calls for 15% tariff on Japanese imports. In turn, the deal called for Japan to invest $ 550 billion in the US and to export its domestic market for US exports and for exports including cars and some agricultural products and in further domestic markets.
The 15% tariff rate on Japanese goods is five percent higher than the basic tariffs of the Trump administration on all foreign imports on 2 April. But it is less than 25% that he threatened against Japan earlier this month and his administration was reduced by his administration. Proposed in early April.
“Japan deal units this pattern that we have seen in this way, which is some market access relief, a commitment to buy American goods, and slightly lower, but above the universal baseline, tariff level,” Alex jackage, head and groundwork colleague, advocacy in a public policy research firm, stated CBS Manivach.
“Japan’s deal definitely provides a framework [Mr. Trump] Looking for, “Jackage said.” It is about accepting a baseline tariff 10%or above, and then the purchase commitments are made. ,
Major catalysts for trade deals
A major element of Mr. Trump’s trade deals has been a commitment by other countries to invest in the US. The President has defended tariffs to revive the country’s domestic manufacturing base and make American exports more competitive as well as to generate additional federal revenue.
“We are learning that the promise of maximum investment in the US does a good job with the administration,” said Gregory Dako, the chief economist of I Parthenon. “The promise to invest $ 550 billion was a large part of the Japan-US trade deal. It was an important catalyst to get a deal.”
The European Union, whose member states have a combined gross domestic product of $ 20 trillion, may possibly be committed to a large investment in the US as it can spread for many years and focus on major areas, such as technology, energy, or artificial intelligence, DACO said.
Additional commitments by the European Union to buy American-made goods and reduce trade obstacles for American exports can also help closure a deal, said. “They don’t spend much, and they are an easy bargaining chip to put forward.”
Risk of high prices
Although 15% of the baseline US tariff on imports of the European Union will represent a trimming from the earlier dangers of Mr. Trump, it will still increase prices for American businesses and consumers according to the stock.
“While it may look like a great deal, it is still much higher than the tariff that the US was imposing in the late 2024,” he said. “So there will still be a shock of positive inflation due to high tariffs. As a result of these high tariffs, there will also be a demand for low business investment, hiring and reducing consumer expenses.”
Currently, the average US tariff rate on imports is about 15%, according to their analysis. If the tariffs with danger of Mr. Trump become effective, this rate will exceed 20%. If the European Union agrees with a 15% tariff rate, however, the average US tariff rate on imports from around the world will fall to 19.5%.
“This is still a significant increase in the average rate,” said the bandits. “This is much higher than 2.5% where we started the year.”
Because most of the US imports from the European Union include industrial inputs such as components, raw materials and machinery, no additional cost will tie to work in its own way through the supply chain, a senior economist of the competitive Enterprise Institute, according to a Nonpartison Think Tank.
“This will rapidly affect manufacturing exports as it will affect American consumers, but it will increase prices around,” Young said.
Contributed to this report.
