When the EU and the US unveiled a new tariff framework in July, hopes were high for a balanced trade reset. But according to Sergi Basco, associate professor of Economics at Barcelona University, the agreement leaves Europe with little more than a 15% ceiling on US duties – down from a potential 30%.
“The only positive outcome for Europe is that instead of 30%, it is 15%,” Basco tells Xinhua, adding that US exports to Europe still face zero tariffs in many key sectors.
For Germany, the EU's top exporter to the US, the outlook is sobering. Basco warns that higher duties will dent German car sales across the Atlantic. Spain's auto industry may also suffer, since many Spanish-made components power the vehicles shipped by German manufacturers.
Basco is critical of EU negotiators for yielding too much ground. “It seems their reaction was weak,” he says, pointing to unexploited tools Brussels could employ to counter US pressure.
He also stresses the non-binding nature of the pact. As Ursula von der Leyen calls it a “framework,” all 27 member states – and their ambassadors – must still approve the deal before it can become reality.
With ambassadors set to meet, the EU now faces a test: Will member states demand stronger safeguards, or settle for a tariff compromise that some see as tilted in Washington's favor?
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Spanish economist says EU gains little from new tariff deal with U.S.
cgtn.com
