BRUSSELS: The European Union anticipates further turbulence in trade relations with the United States but views its recent tariff agreement as a protective measure. Under the deal, most EU exports to the US will face a maximum 15% tariff, providing a buffer against potential disputes.
A senior EU official confirmed that executive orders to reduce tariffs on specific goods, including cars and car parts, are expected soon. “We do expect further turbulence, but we have a clear insurance policy—the 15% tariff across the board. If the U.S. administration does not stick to that, we have the means to react,“ the official said.
While the agreement covers most sectors, key industries like wine and spirits remain unresolved. Gabriel Picard, head of France’s wine and spirits exporters federation, expressed cautious optimism. “We are 48 hours away from a decision, and we have not lost hope that wines and spirits can be exempted,“ he said.
The EU is also negotiating exemptions for essential products, aiming for a zero-tariff arrangement. However, discussions on steel and other sensitive sectors are taking longer due to volume-related complexities.
Despite the deal, business sentiment in the euro zone has dipped, reflecting concerns over unresolved trade issues. German engineering orders fell 5% in June, highlighting economic uncertainty. France and Germany have called for a stronger EU stance in future trade talks. - Reuters
