Eng
The U.S. signed a framework trade deal with the European Union that sets a 15% import duty on most EU goods – half of the 30% tariff Trump threatened to roll out in a few days.
According to Trump, the deal also envisages the EU purchasing USD 750 billion worth of American energy resources in the coming years and “hundreds of billions of dollars” worth of weapons. In addition, the EU is expected not only to refrain from retaliatory measures and remain largely open to American goods, but also to invest USD 600 billion in the U.S. during Trump’s term in office.
Although this should keep Europe out of recession, the economy is likely to remain sluggish: it is somewhere between the two tariff scenarios that the European Central Bank predicted last month with economic growth of 0.5–0.9% this year.
Calling the deal a painful compromise, the Federation of German Wholesale, Foreign Trade and Services (BGA) said it was time for Europe’s reliance on their biggest trading partner to be reduced.
Source: reuters.com