Tariff on the tariff

After weeks of tense negotiations between their highest trade officials, the European Union and the US finally concluded the frame – and this comes on the eve of the latest tariff talks in America with China.

In the end, it took the leader from Washington and Brussels to sit face to face to reach the Sunday Treaty.

This is what we also saw with other transactions impressed by President Donald Trump – his personal participation is something that pushed them along the line – even if the breakthroughs did not seem bright.

This matters to both parties because so many businesses and jobs depend on what the EU calls “the world’s largest bilateral trade and investment relations”.

Trump’s administration celebrates it as a great victory and in many ways. But this is also not a complete defeat for the President of the European Commission Ursul von der Leyen.

“The whole European press sings praise of the president now, surprised by the transaction he has agreed on behalf of the Americans,” – Vice -President JD Vance stated in a message on social media X website.

“Tomorrow, American media will undoubtedly manage headlines, for example,” Donald Trump received only 99.9 percent of what he asked, “he added.

Consolation is that the EU is now faced with the 15% tariff, not 30% threatened.

But this is still a serious rise because the rate is much higher than before Trump’s so-called Liberation Day in April and not as good as 10% in the UK.

Brussels may indicate that the lower speed extends to numerous major European exports, including pharmaceuticals and semiconductors.

This also means that EU manufacturers will face 15% US import tax rather than 25% of the global tariff brought in early April.

But in return, the EU “opens its countries at zero tariff” for American exports, Trump said.

EU Steel and aluminum will also continue to face the tariff by 50% when sale in the US.

The block spent weeks trying to present himself a tough negotiator because he prepared tariffs for retaliation and warned that he could survive them.

The threatening measures would reach 100 billion euros ($ 117.6 billion; £ 87.5 billion) US goods sold to the EU.

A list of 217 pages of what could be aimed at was published in May. It included everything from the animal to the details of the aircraft and whiskey.

But in the talks in Brussels there were big problems in their trade.

The terms are far from ideal for the risk of trade war with the world’s largest economy.

Economic growth of Europe has been sluggish for some time, and only last week the European Central Bank warned that “the environment remains exclusively uncertain, especially because of trade disputes.”

This transaction eliminates part of this uncertainty and ultimately the European Commission, which negotiates the trade of 27 EU members, has decided that prices, even if 15% of the President Trump tariffs eventually reduce the volume of trade because they make exports in the US less competitive.

Europe also depends heavily on the US for its safety. In the back of the Brussels team’s mind, it would be concerned that Trump could potentially stop the supply of weapons to Ukraine, pull US troops from the region or even leave NATO.

For Trump still feeling glowing from Tariffs last week engaged with JapanThe announcement marks another Great Victory.

The transaction is also equated with the expectation of tariff revenues of approximately $ 90 billion (67 billion pounds) for the state box office – based on last year.

The EU agreement will also buy American energy products and weapons worth hundreds of billions of dollars.

Trump said the EU would increase its $ 600 billion investment in the US, including US military equipment and spends $ 750 billion on energy.

The transaction is sold as a significant moment in the relationship between Washington and Brussels.

It was not easy to get to this point.

Both Played in Hardball and none of them was ready to understand easily, but none of the parties wanted these negotiations to be dragged beyond August 1.

For many years, the US president has opposed what he considers unfair trading practice in Europe.

The first part of this is a deficit. Last year, this meant that the US bought $ 236 billion from the EU than they sold the block.

Trump accepts somewhat simplified opinion that this American wealth is unnecessary to leave the country. The reality is that international trade is a more difficult business.

The second complaint was that the EU’s strict rules of everything, from cars to chickens, make it difficult to sell US companies to the EU than the other way around.

Ursula von der Leyen, President of the European Commission Ursul von der, acknowledged the need to resolve the deficit.

Announcement of the agreement, she said, “We must move it. We have great trade relationships.

“This is a huge amount of trade that we have together. So we will make it more stable.”

This transaction shows how serious President Trump is engaged in negotiating how the US is the world’s largest economy, leading business with everyone else.

Given that the EU consists of 27 different countries, it seemed one of the most difficult trade agreements.

It happened a few days after the US launched another major agreement with Japan – there were also transactions with the UK, Vietnam and Indonesia.

The rest is large, still on the table, are with three largest individual trading partners of the United States – Mexico, Canada and China.

And with the US President in the mood that deals with transactions, over the next 48 hours may be more positive news for the global economy.

For the third time in the same number of months on Monday and Tuesday, the US and China are talking in Stockholm in Sweden.

There are expectations that higher tariffs between the two largest economies in the world can be suspended for another 90 days.

A few days ago, Trump said the United States was “very well with China” and meant that the main export point of rare land was overcome.

With wide EU outlines The transaction agreed that the participants of the negotiations in Washington strengthened their hand when they were negotiating with Beijing.

But China still has accepted a more uncompromising approach than other US trading partners.

And when the conversations between the two largest economies in the world break up, global trade may still face violations in the coming months.