The issue of US taxes affects the entire planet, as product prices have an indirect relationship with the economic prosperity of the United States. That’s why the Commission’s announcement that the Trump administration will seek to impose a 15% ceiling on all tariffs for products originating from the European Union seems to align with what EU officials are thinking. The US President, however, announced new taxes, while he did not discuss them in his meeting with Trade Commissioner Maroš Šefčovič (pictured).
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Thus, the Trump administration will not harm European entities with additional percentages, something the European Union considers part of a certain shift by him, which became evident in his stance on Ukraine.
Commission on US tariffs: What the announcement stated
As stated in the announcement, the maximum tariff ceiling for products originating from the European Union will be 15%, despite the surrounding fears of massive increases.
According to the announcement, “the US intends to immediately ensure that the tariff rate, which consists of the MFN (‘Most Favored Nation tariff’) and the tariff imposed under Section 232 of the Trade Expansion Act of 1962, applied to products originating from the EU that are subject to Section 232 measures for pharmaceutical products, semiconductors and lumber, will not exceed 15%“.
The European Union, through its officials, allows a restrained satisfaction to hover over the issue. This agreement is the most profitable for a US trading partner. The same applies to the European Commission, which through Commission spokesperson Olaf Gill, demonstrated its position: “It is clear that the overall 15% tariff ceiling for EU exports constitutes a guarantee that higher tariffs will not be imposed on European economic operators. The EU is the only trading partner that has achieved this result with the US. The EU and the US continue to cooperate on implementing the commitments of the joint declaration, while exploring further areas for tariff exemptions as well as broader cooperation”.
The cautionary comment
In the European Union, however, despite Donald Trump’s new approach to the Ukraine war, they are not certain that this 15% commitment, as well as anything else that has emerged as given, will be maintained while he is President. An EU official said that “only one person makes decisions in the US” and that “even if there are assurances, no one is sure they won’t be overturned”.
