EU plan to scrap tariffs on US industrial goods

Cryptopolitan :

The European Commission on Thursday set in motion plans to eliminate duties on U.S. industrial products, opening the EU’s procedure for a trans-Atlantic trade arrangement that would also backdate reductions in U.S. levies on European cars.

The provisional arrangement eased tensions between the two largest trade and investment partners, though the terms are not balanced. The EU agreed to reduce its own tariffs and step up purchases of U.S. energy, while the United States continued to apply duties to roughly 70pc of EU shipments.

In February, Trump said the EU was “formed to screw the United States” and linked the new terms to shrinking the U.S. goods deficit with the bloc, which stood at $235 billion in 2024.

Member governments indicated they accepted the arrangement as the less harmful option, pointing out that, without a deal, the White House had been prepared to slap 30pc tariffs on almost all EU imports.Together, the EU and the United States make up close to a third of world trade.

Trump and von der Leyen announced the pact at the U.S. president’s golf course in western Scotland.

“I think this is the biggest deal ever made,” Trump told reporters on July 27th, praising EU plans to invest about $600 billion in the United States and to sharply increase purchases of U.S. energy and military equipment.

He argued the pact surpassed $550 billion agreement with Japan and would strengthen relations after years of what he described as unfair treatment of U.S. exporters.