US and EU agreed to cap tariffs on most EU items at 15%, averting a threatened 30% hike. Steel and aluminium tariffs stay at 50% however solely above quotas. Zero tariffs apply to aerospace elements, sure chemical substances, and uncooked supplies. The EU will improve purchases of US vitality and navy gear.
German auto trade welcomed the deal however warned the 15% tariff will nonetheless value billions and affect margins or costs. Audi minimize its income forecast by €2.5 billion as a result of tariffs.
Mixed responses from EU leaders. Hungary’s Viktor Orbán criticized the deal as unfavorable, whereas Belgium’s Bart de Wever known as for continued dedication to free commerce.
The deal goals to ease commerce tensions sparked by US tariffs launched below former President Trump and avoids additional escalation, although it maintains increased tariffs than pre-trade-war ranges.
