Chennai: The US has halved the reciprocal tariffs on the European Union to 15 per cent as per the trade deal announced by both parties, which also included $600 billion investment and $750 billion energy imports by EU.US President Donald Trump said the EU would boost its investment in the US by $600bn (£446bn), which will also include American military equipment.It would also spend $750 billion on energy imports, including LNG, oil, and nuclear fuel, from the US in a few years. The European Union said that it will help reduce European reliance on Russian power. In 2024, the EU’s total energy imports stood at €375.9 billion, which is around $437 billion.The 15 per cent tariff will be levied on most goods, including semiconductors, automobiles, and pharmaceuticals. However, aircraft and parts, certain chemicals, generic drugs, and some agricultural products from the EU will remain exempt. Steel and aluminum will continue to face a 50 per cent US tariff over and above existing MFN levels.However, the EU said that metal duties “will be cut and a quota system will be put in place,” in the future.As per reports, the US can expect roughly $90 bn of tariff revenue into government coffers – based on last year’s trade figures. The US imported about $606 billion worth goods from the EU and exported around $370 billion in 2024.The EU agreed to eliminate tariffs on a broad list of US goods ranging from aircraft and semiconductor tools to agricultural goods and raw materials. It will ease product standards and certification rules for US automobile and farm exports and buy US defence equipment. “Like Japan, the EU also has made huge investment commitments. If agreed, the US–India deal could follow the same pattern as recent ones, with around 15 per cent tariffs on Indian exports to the US, in return for tariff cuts, investment pledges, and regulatory access for American firms,” said Ajay Srivastava, founder, GTRI.
Source link
