Eu Measures To Limit Trump Damage

Following a meeting between European Commission president Ursula von der Leyen and President Donald Trump in Scotland on July 28, Trump halved the punitive tariffs against the biggest trading partner of the United States from 30 to 15. The United Kingdom has negotiated a 10 rate. As a bargaining chip, the EU had prepared proportionate countermeasures targeting up to 93 billion of US goods, including tariffs on American imports like bourbon, cars and various agricultural products. In her July 13 statement announcing the plans, Von der Leyen said the 30 tariffs would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic. EU Trade Commissioner Maro efcovic warned on July 14 that tariffs of 30 would practically prohibit the trade between the EU and US. In return for the halving of the tariffs, he said the 27-member EU bloc would open its markets to certain US products at zero percent tariff. The government has also committed European companies to buy 750bn worth of energy- related goods over three years and invest an extra 600bn in the US. In 2024, the US trade deficit with the EU was 236bn, R4.2 trillion, an 18 growth on the 2023 US deficit, according to the Office of the US Trade Representative. Von der Leyen said the agreement creates certainty in uncertain times. It delivers stability and predictability for citizens and businesses on both sides of the Atlantic. There is no blanket reduction a 50 tariff has been imposed on EU steel and aluminium exports to the US. This applies to all steel and aluminium imports into the US, according to Trump. There would seem to be no winners. Although the agreement will leave everyone worse off in the end, the cost is manageable and preferable to a trade war the EU can ill afford and would likely lose, commented Aslak Berg of the Centre for European Reform. It is estimated that the EU will suffer 8 000-10 000 job losses per 1bn export reduction. The EU is also keeping a careful watch on Chinese imports. A report by the EU Economic Governance and EMU Scrutiny Unit states, a critical secondary effect concerns second China shock risks, as higher US tariffs on China could divert Chinese exports toward the European market. ER