The United States and the European Union (EU) have finally released a joint statement on a trade deal they struck nearly a month ago, setting a maximum tariff rate of 15% on key goods such as cars, semiconductors and pharmaceuticals.
Although the move was seen as a ‘first step’, the statement disappointed several EU member states after wine, steel and aluminium were left out of the list of exemptions, instead remaining at existing tariffs of up to 50%.
EU Trade Commissioner Maroš Šefčovič stressed that the new rates would take effect retrospectively from August 1, if the proposed legislation is approved this month.
In addition, the EU has pledged to buy $750 billion worth of US energy products by 2028, $40 billion worth of AI chips, and increase strategic investments by $600 billion.
The bloc will also relax several laws that have been considered sensitive, including a carbon tax mechanism.
However, the move was criticized by some former EU officials who described it as "complete surrender" because US tariff rates are still high while the EU has almost eliminated duties on industrial goods.
