The European Union and the United States are working to make a tariff deal with the US looking to get benefits in key industries like cars and steels. The US wants to cooperate in many fields including security, tariffs, capital punishment and food. Donald Trump on the other hand clearly mentioned putting 20% tariffs on European Union goods if no energy deal is reached.
Trade Investments:
The two countries collectively have a GDP of 60% and they represent 33% of trade goods and they are planning to invest on many projects including transatlantic trade and investment partnership.
Security challenges:
Despite disputes on many global reforms, both agreed on cooperation on security issues. The European Union and United States accentuated on countering the Russia aggression and also to promote stability in the region. The European Union showed serious concerns on Russian threats and they agreed to increase mutual relations with the United States to overcome the leading disputes.
Donald trump view point:
The US is most likely to impose a large on European Unions if the agreements between the union and the United States failed. The US is more likely to impose a 20% tariff on European Union goods. According to analysts, the European Union trade chief Maros Sefocovic and the European commission president Bjoern Seibert are likely to meet Donald Trump the US president on 9 July in Washington. If the agreement between the two fails the US will increase tariff goods to almost 25% on the European Union. The European Union imports will face high tariffs in the United States if the agreement between the two fails.
Tariff relief A major setback:
The European Union wants an immediate tariff relief while on the other hand the US agreed on phases for tariff discounts and implementation. US officials emphasized that the trade deal announcement can extend till September 2025 ahead of the pending Trump tariff decision. The US vice president criticised the policy of the European Union and showed massive support for far right movements in Europe.
European Union tariff relief:
The US imposed a 10% tariff on universal goods of the European Union. The European Union wants an immediate relief on tariff deals including: The European Union wants exemption from 25% tariff on automobiles and other cars. The European Union wants exemption from the 50% tariff on steel products. The European Union wants lower tariffs on pharmaceutical products. The European Union wants lower tariffs on aircrafts and other defence agreements.
The US is slightly in disagreement with the policy of the European Union and earlier both failed to reach an agreement. The United Nations is focusing on reviving the domestic automobile while on the other hand European Union opposed this decision of the United States. The European Union emphasized on making a fair trade deal with the United States.
It’s worth mentioning that earlier the agreement between the United Nations and the European Union failed to get mutually accepted and if it fails again most likely Donald Trump will impose high tariffs on European Union goods.
Domestic manufacturing; A booster to US economy:
The US is putting high tariffs on almost all neighboring countries’ goods and trading partners to achieve the goal of domestic manufacturing of automobiles. The European Union has been working delightfully to reach a trade deal with the United States. The European Union wants to protect its economic deals and establish stable agreements for both parties.
Other challenges between European Union and the United States:
The European Union opposes capital punishment and it’s illegal in the countries of the European Union while on the other hand capital punishment is legal in some states of the US. Germany, Italy and France are the main exporters of the United States and they want a fair tariff deal. European Union wants to promote its growing semiconductor sector and they want fair tariff deal to promote it.
Conclusion:
Analysts are predicting the tariff deal between the United States and the European Union will reach a fair conclusion with both biggest trading partners will make a fair deal with each other. Donald Trump earlier made many fair deals with trading partners and experts are predicting another successful trade deal between the European Union and the United States. Donald Trump wants to prevent escalation between the European Union and the United States on the tariff deals.
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