US-EU: A new tariff compromise and its implications for the European economy

On the eve of the introduction of 50% duties on a number of European goods, the United States and the European Union concluded an agreement under which 15% tariffs will be applied to most of the products exported from Europe. The deal affects industries such as automotive and pharmaceuticals, and is designed to prevent rising trade tensions between the two economic blocs.

In return, the European Union pledged to invest $ 600 billion in the U.S. economy, buy $ 750 billion worth of U.S. energy, provide U.S. companies with access to European markets on zero-tariff terms, and increase purchases of U.S.-made military equipment. For a number of sensitive categories — including steel and aluminum exports — high 50 percent duties will remain, while aerospace products will be exempt from customs duties.

Following the signing of the agreement, the European Commission announced its intention to continue negotiations with Washington on easing conditions, including the introduction of quotas and a phased reduction in tariffs on a number of sensitive commodity items.

Among the EU countries, the deal caused a mixed reaction. Representatives of the German industrial sector expressed concern about the distortions in the agreement and described the compromise as a unilateral concession under pressure from the United States. Critics point out that European exporters will continue to be subject to higher duties compared to American suppliers.

In addition, the European Union officially confirmed the complete rejection of Russian energy carriers, stating its intention to replace them with large purchases of American liquefied natural gas, oil and nuclear fuel. This step is explained by the need to strengthen energy security and diversify supplies in the context of geopolitical changes. According to the head of the European Commission, energy cooperation with the United States will become a new strategic direction in transatlantic relations.

The deal with Washington, despite internal criticism, is seen as an attempt to stabilize economic relations between key global players and maintain predictability in global trade.