The United States and the European Union have officially published the details of their recently concluded trade agreement, aimed at easing tensions in the trade war that began under the Trump administration, reports The New York Times.
The joint document, released on Thursday, states that the US will maintain high tariffs on European cars until the EU takes steps to reduce customs duties on American industrial and agricultural products.
Currently, 15% tariffs remain in place for most European goods, including key exports such as pharmaceuticals, thereby avoiding the planned tax hikes that could have reached 200%. However, European automobiles will continue facing a 27.5% tariff until the EU formally passes legislation lowering taxes on American goods.
EU Trade Commissioner Maros Sefcovic confirmed that the legislative process will begin this month, opening the way for tariff reductions on cars, with retroactive effect starting from August 1. Despite Brussels’ efforts, European negotiators failed to secure relief for wines and alcoholic beverages, which will now face 15% tariffs, compared to zero duties in the past.
European Commission President Ursula von der Leyen described the agreement as a step toward “stability in the world’s largest trade partnership.” However, the deal is not yet legally binding and is viewed as an initial move toward a broader pact that could require years of negotiations.
As part of the agreement, Europe has also pledged to increase purchases of US energy by $750 billion and expand investments in the US by more than $600 billion. Still, EU officials consider these commitments as promises rather than binding obligations.
