The United States and the EU reached a 15% tariff agreement, von der Leyen: This is the best result that the EU can achieve

CCTV News  

Trump stated that the EU will increase investment in the United States by 600 billion U.S. dollars, will purchase U.S. military equipment and U.S. energy products worth 750 billion U.S. dollars, keep steel and aluminum tariffs unchanged, and the United States will invest heavily in the chip field. U.S. Commerce Secretary Lutnick said that the United States will determine the tariff policy on chips within two weeks; the EU will open its 20 trillion U.S. dollar market and fully accept U.S. automotive and industrial standards for the first time. Von der Leyen said that both the automotive and pharmaceutical industries will implement a unified 15% tariff, and no decision has been made on the spirits sector. The Chairman of the European Parliament's Trade Committee said that the U.S.-EU trade agreement is seriously imbalanced and harms European interests. Finland's Minister for Foreign Trade and Development said the U.S.-EU trade agreement is not worth celebrating, and tariffs are still high. The German business community criticized the U.S.-EU trade framework agreement.

The United States and the European Union reach a trade agreement  

On July 27 local time, U.S. President Trump stated that the United States has reached a tariff agreement with the EU with a 15% tax rate. Trump said that the EU will increase investment in the United States by 600 billion U.S. dollars more than before, the EU will purchase U.S. military equipment, and will buy U.S. energy products worth 750 billion U.S. dollars. Trump said that tariffs on steel and aluminum will remain unchanged, energy is a key part of this agreement, the agreement will benefit the automotive industry, agriculture will also have a significant impact, the United States will invest heavily in the chip field, and the British Prime Minister is pleased with this agreement.

U.S. Commerce Secretary Lutnick said that the United States will determine the tariff policy on chips within two weeks.

Trump said that the United States is considering reaching agreements with three to four other countries, most of which will involve fixed tariffs. The United States will maintain low tariffs on other countries, and all countries will receive clarification or confirmation letters in the next week, and the confirmation tariff letters will be sent by August 1.

European Commission President von der Leyen said that the EU and the United States have agreed to implement a unified 15% tariff rate, and various commodities including automobiles will apply this tariff standard. Von der Leyen said that these trade agreements with the United States will bring stability to the market.

Von der Leyen: 15% tax rate is the best result the European Commission can achieve  

On the 27th local time, after announcing with U.S. President Trump that the EU and the United States had reached a major trade agreement, European Commission President von der Leyen explained some of her decisions in the trade negotiations with the United States.

Von der Leyen said that the EU is still overly dependent on Russian liquefied natural gas, so importing more affordable liquefied natural gas from the United States is very welcome.

Regarding tariff arrangements, von der Leyen confirmed that the tariff on the automotive industry in the agreement is uniformly set at 15%. She said that under the current situation, a 15% tariff level is the best result the European Commission can achieve.

In addition, she also confirmed that the EU and the United States have also reached an agreement in the pharmaceutical industry, and will implement a unified 15% tariff rate. Von der Leyen acknowledged that the EU and the United States have not yet made a decision on the spirits sector, and the details of the trade agreement framework signed that day will be announced in the coming weeks.

U.S. Commerce Secretary: The EU will open its $20 trillion market  

On July 27 local time, U.S. Commerce Secretary Lutnick posted on his social media that U.S. President Trump has opened the door to one of the world's largest economies. The EU will open its $20 trillion market and fully accept U.S. automotive and industrial standards for the first time.

In addition, the EU will also purchase 750 billion U.S. dollars of energy products from the United States and invest 600 billion U.S. dollars in the United States. The U.S. tariffs on EU products imported into the United States will all be set at 15%.

EU senior official: U.S.-EU trade agreement is seriously imbalanced and harms European interests  

On the 27th local time, after the United States and the EU announced the reaching of a new trade agreement, Bernd Lange, Chairman of the International Trade Committee of the European Parliament, expressed strong dissatisfaction with the agreement, stating that it is neither satisfactory nor in line with Europe's fundamental interests.

Lange pointed out that this is a biased agreement. He believes that although the unified 15% tax rate brings a certain degree of predictability and legal security to trade relations, overall, this agreement is far from balanced and may even cause long-term harm to Europe. Lange said that the European Commission's commitment to an additional 600 billion U.S. dollars in investment in the United States and large-scale procurement of U.S. military technology is not conducive to employment and industrial development in Europe.

Lange further criticized that the agreement not only weakens the EU's economic strength but also is similar to the Trump administration's practice of "extorting" Japan and other countries with tariffs.

Lange emphasized that the agreement is not a mutually beneficial trade cooperation but a one-sided concession. He also pointed out that the U.S. Treasury Secretary announced that day that the new tariffs have brought 27 billion U.S. dollars in fiscal revenue to the U.S. side. Lange said that the real intention of the United States is to generate revenue through tariffs, and the result of this negotiation can hardly be called a victory for EU interests, let alone a commendable diplomatic achievement.

Finnish Minister for Foreign Trade and Development says U.S.-EU trade agreement not worth celebrating, tariffs still high  

Regarding the latest trade agreement reached between the EU and the United States, Ville Tavio, Finland's Minister for Foreign Trade and Development, said on the 27th local time that although the agreement has defused the situation, there is no reason to be happy, and the tariff level is still high. "In the long run, this may not be a very sustainable agreement, but we will wait and see."

Tavio said he looks forward to the European Commission providing detailed information on the content of the agreement and the views of EU member states on it. Tavio said that due to the tariff negotiations initiated by the Trump administration, global trade policies have become quite tense, and global trade has become unstable.

German business community criticizes U.S.-EU trade framework agreement  

On the 27th local time, the EU and the United States reached a framework agreement on their trade issues. According to the agreement, the United States will impose a unified 15% tariff on most EU imported products. In this regard, there has been a lot of criticism from the German economic circles.

According to calculations by the Kiel Institute for the World Economy (IfW), the 15% general tariff and higher steel and aluminum tariffs will cause Germany's GDP to drop by 0.15% within a year, equivalent to a reduction of 6.5 billion euros, while the EU's overall GDP will drop by 0.1%.

Julian Hinz, Director of the Trade Policy Research Center at the Kiel Institute for the World Economy, sharply pointed out that the agreement to reduce tariffs to 15% is "a bad deal, which is not much different from the Trump administration's threat of 30% tariffs". He emphasized: "To do this at the expense of undermining the rules-based global trading system, I think it is a major strategic mistake."

Hinz further warned that even the 15% agreement will "come at the cost of undermining the authority of the WTO, which is undoubtedly the wrong direction in the long run". He suggested that the EU should form an alliance with like-minded countries such as Canada, Mexico, Brazil, and South Korea, rather than being broken by the United States one by one. "Only in this way can we gain important leverage in Washington" to effectively counter tariff threats.

There was no sign of relief in the initial reaction from the German business community. "This agreement is a painful compromise," said Dirk Jandura, President of the German Federation of Wholesale, Foreign Trade and Services (BGA). "Every percentage point of tariff is too much. This tariff increase poses an existential threat to many of our merchants." He called it "a heavy blow to foreign trade".

Wolfgang Niedermark, a member of the Executive Committee of the Federation of German Industries (BDI), pointed out: "This agreement is an inadequate compromise, sending a dangerous signal to the closely intertwined economies on both sides of the Atlantic." The EU has to bear the cost of high tariffs to reach an agreement with the United States. After all, even a 15% tariff rate will have a huge negative impact on Germany's export-oriented industry.

Johannes Gernandt, Chief Economist of the German Mechanical Engineering Industry Association (VDMA), pointed out: "The 15% U.S. tariff will significantly weaken the competitiveness of German machinery and equipment manufacturing, especially for enterprises that directly compete with U.S. suppliers." A survey by the association shows that under the 10% tariff rate, 43% of enterprises believe that their competitiveness will be "strongly" or "very strongly" affected. Gernandt warned: "The 15% tariff has obviously entered a dangerous range."

In a comment article titled "Europe Surrenders to Trump in Tariff Dispute - At a High Cost", the German "Business Daily" believes that "trade between the two major Western economic groups will become more difficult and costly. This will harm the interests of both Europe and the United States, both in the short and long term. Von der Leyen once mentioned that the transatlantic relationship needs necessary rebalancing. Now this adjustment has become a reality, and the balance has obviously tilted in a direction unfavorable to Europe."

Source: CCTV News, original titles: "The United States and the European Union Reach a Trade Agreement", "Von der Leyen: 15% Tax Rate is the Best Result the European Commission Can Achieve", "U.S. Commerce Secretary: The EU Will Open Its $20 Trillion Market", "Tariffs Still High, Finnish Minister for Foreign Trade and Development Says U.S.-EU Trade Agreement Not Worth Celebrating", "German Business Community Criticizes U.S.-EU Trade Framework Agreement".

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