US President Donald Trump announced on Sunday that the United States had reached a framework trade deal with Europe, preventing a flare-up between the two allies that account for nearly a third of global trade.
The deal, which includes a 15 percent tariff on EU goods entering the US and significant EU purchases of American energy and military equipment, will bring welcome clarity to EU companies.
However, many in Europe will view the 15 percent base tariff as a poor result compared with Europe's original ambitions for a zero-to-zero deal, although it is better than the threatened 30 percent rate.
The announcement came after European Commission President Ursula von der Leyen travelled to Scotland for talks with US President Donald Trump to push a tough deal across the line.
Trump, seeking to reshape the global economy and reduce the long-running US trade deficit, has so far secured deals with Britain, Japan, Indonesia and Vietnam, though his administration has failed to deliver on its promise of “90 deals in 90 days.”
Trump has periodically criticized the European Union, claiming it was “designed to hurt the United States” on trade issues.
Its main problem is the US goods trade deficit with the EU, which in 2024, according to the US Census Bureau, will reach $235 billion.
The EU points to the US surplus in services, which it says partly balances the balance.
Prime Minister Michael Martin said in a statement: “The agreement reached this afternoon in Scotland between Presidents von der Leyen and Trump is very welcome.
“This brings clarity and predictability to trade relations between the EU and the US – the largest in the world.
“This is good for business, investors and consumers. It will help to protect many jobs in Ireland.
“The negotiations that have brought us to this point have been long and difficult, and I would like to thank both teams for their patient work.
“We will now examine the details of the agreements reached, including their implications for businesses exporting from Ireland to the US, as well as for the various sectors operating here.
“The agreement is a framework agreement and more detailed details will be worked out in the coming weeks and months.
“This means that higher tariffs will now be introduced than before and this will impact trade between the EU and the US, making it more expensive and difficult.
“However, it also creates a new era of stability, which we hope can contribute to the development and deepening of relations between the EU and the US, which is important not only for the EU and the US, but also for the global economy.”
“Given the real risk of escalation and the introduction of punitively high tariffs, many will welcome this news.”
Sourse: breakingnews.ie
