Hey everyone, welcome to amigonews.net! In a surprising twist in global trade, the US and the EU have struck a deal that imposes a 15% tariff on most EU exports to the US, aiming to defuse a looming trade war. Last Sunday in Scotland, US President Donald Trump and European Commission President Ursula von der Leyen finalized the agreement just before an August 1 deadline that would have triggered even steeper tariffs.
European leaders have voiced their opinions with passion. Bernd Lange, chair of the European Parliament's Committee on International Trade, called the new framework "unsatisfactory" and "significantly imbalanced," pointing out that the tariff is a fourfold increase over current averages, while the EU would maintain zero tariffs on US goods. Finnish Minister for Development Cooperation and Foreign Trade, Ville Tavio, noted, "It has calmed the situation, but there's no reason for celebration." Meanwhile, French Prime Minister Francois Bayrou remarked that "it is a sombre day when an alliance of free peoples resigns itself to submission."
On Wall Street, the mood is cautious. Analysts suggest that while the deal may reduce the risk of a recession, the high tariff could still stunt growth, creating an environment of slow growth paired with steady inflation. Markets reacted swiftly: the dollar strengthened against the safe-haven Swiss franc and the euro saw its biggest daily drop since mid-May.
This landmark trade agreement may well redefine transatlantic ties and shape future global economic trends. It’s like a high-stakes level in your favorite blockbuster game—exciting, risky, and full of surprises! 🚀 Stay tuned for more updates as we watch these developments unfold on the international stage.
Reference(s):
cgtn.com
