US President Donald Trump said on Sunday that the United States had reached a framework trade deal with Europe, preventing a worsening conflict 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 US energy and military equipment, will provide much-needed clarity for EU companies.
However, many in Europe may view a 15 percent base rate as a poor outcome compared to Europe's original ambitions for a zero-to-zero agreement, although it is better than the threatened 30 percent rate.
The announcement came after European Commission President Ursula von der Leyen visited Scotland for talks with US President Donald Trump to push the difficult deal towards completion.
Trump, seeking to reshape the global economy and reduce the long-running US trade deficit, has so far reached agreements 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.
His main concern is the US trade deficit with the EU, which will reach $235 billion in 2024, according to the US Census Bureau.
The EU points to the US surplus in services, which it believes partly offsets this imbalance.
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 creates clarity and predictability in trade relations between the EU and the US, the largest in the world.
“This will be good for businesses, 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 look into the details of the agreements reached, including their impact on companies exporting products from Ireland to the US, as well as the various sectors operating here.
“The agreement is a framework, and more detailed aspects will be worked out in the coming weeks and months.
“This means that there will now be higher tariffs than before and this will impact trade between the EU and the US, making it more costly and difficult.
“However, it also opens up 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 these two parties, but also for the global economy.”
“Given the real risk of escalation and the introduction of punitively high tariffs, this news will be welcomed by many.”
Sourse: breakingnews.ie
