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EU Faces Little Gain from New Trade Deal with US, EU Expert Warns

Strategic Insights

— 1 min read

The European Union is expected to be negatively impacted by a new trade deal with the United States, with Germany likely to bear the brunt of the effects. The deal, which sets a 15 percent tariff rate on goods from the EU, while exempting many American exports, will reduce sales of German cars to the US and hurt Spain's auto industry. European leaders have been criticized for being too weak in negotiating the deal, failing to effectively resist US pressure. The trade agreement is non-binding, with further negotiations planned to implement the deal according to internal procedures.

Key Takeaways:

  • The new trade deal between the EU and US is likely to have a negative impact on the EU, particularly Germany, which exports the most to the US.
  • The deal will reduce sales of German cars to the US by 15 percent, instead of the previous 30 percent tariff rate.
  • Germany is expected to lose the most from the deal, with Spain's auto industry also being affected due to the use of Spanish components in German cars.
  • European leaders have been criticized for being too weak in negotiating the deal, failing to effectively resist US pressure.
  • The trade agreement is non-binding, with further negotiations planned to implement the deal according to internal procedures.
  • European Commission President Ursula von der Leyen has described the trade agreement as a "framework," requiring approval from all 27 EU member states before it can take effect.
  • The ambassadors of the 27 EU member states will meet on August 4 to discuss and approve the trade agreement.

Statistics:

  • 15 percent: the tariff rate on goods from the EU set by the US under the new trade deal.
  • 30 percent: the previous tariff rate on goods from the EU.
  • 15 percent: the reduced tariff rate on German cars exported to the US.
  • 4: number of days before the EU ambassadors meet to discuss and approve the trade agreement.

Sources:

  • Xinhua
  • University of Barcelona
  • European Commission
  • People's Republic of China in Russian - People's Republic of China in Russian
  • State Council News
  • EUR-Lex
  • European Commission Office in Spain

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