US and EU Agree on Trade Deal, Averting Trade War with 15% US Tariffs

New Trade Framework Agreement

• 🤝 The US and EU have reached a framework trade deal, imposing a 15% US import tariff on most European goods.
• 🎯 This agreement averts a potential trade war between the two major economic powers, which together account for nearly a third of global trade.

Key Sector Impacts

• ✈️ A significant exemption includes all aircraft and component parts, providing particular relief to European plane maker Airbus and supporting approximately 1 million European jobs in the civil aviation industry.
• 🚗 For the automobile sector, imported cars will now face a 15% US tariff, a reduction from previous threats, making the economic damage manageable for the German economy.
• 💊 The pharmaceutical industry will see an increase in tariff rates, though it is lighter than the 200% previously threatened.
• 💎 The luxury goods industry, including leather goods, fragrances, and cosmetics, is set to take a hit, with tariffs increasing from a previous 10%.
• 🏭 Steel and aluminum will remain under existing 50% US tariffs, with further talks planned for reduced tariff quotas.
• 🍷 Several other sectors, such as European wines and liquors, remain in suspense regarding their tariff status.