US President Donald Trump and Ursula von der Leyen, President of the European Commission, reached an agreement on Sunday. Most European products entering the United States, including those related to the automotive industry, will be taxed at 15%. However, the fate of wines and spirits has not yet been decided…
At the eleventh hour… With the deadline for negotiations on reciprocal customs duties set by Donald Trump for August 1, a trade agreement was finally reached on Sunday, July 27, with Ursula von der Leyen, President of the European Commission. This was announced to the press after an hour of talks at the Trump Turnberry golf resort on the west coast of Scotland.
While the US President had threatened to raise tariffs on imports from Europe to 30%, he finally split the difference, settling on 15%. In exchange for his “leniency,” Donald Trump secured a commitment from his European partners to invest an additional $600 billion in the US, as well as to purchase US military equipment and $750 billion worth of US energy, particularly liquefied natural gas (LNG).
The fate of wines and spirits still undecided
Most exports from the 27 members of the European Union are affected by these new 15% tariffs, including the automotive sector, pharmaceuticals, and semiconductors.
However, the scope does not include wines and spirits, whose fate will be announced in the coming weeks, nor European steel and aluminum, which will remain subject to a 50% tariff.
Since taking office, Donald Trump had already raised tariffs on more than 70% of European exports, which had previously been limited to an average of 4.8%. The US president had decided to impose a 10% tariff on most European products, as well as a 50% tariff on steel and aluminum and a 25% surcharge on cars and car parts on top of the existing 2.5% tariff.
The lesser evil
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Read also > Reciprocal customs duties: a break but an uncertain future – Luxus Plus
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