In a last-minute move under Scotland's skies, President Donald Trump and European Commission President Ursula von der Leyen struck a landmark trade agreement in Scotland, imposing a 15% tariff on most EU exports to the US in exchange for zero duties on American goods.
But not everyone is celebrating. European leaders are voicing concerns over the deal's balance and economic impact:
- Bernd Lange, chair of the European Parliament's Committee on International Trade, calls it unsatisfactory and significantly imbalanced, noting the tariff quadruples current rates.
- Ville Tavio, Finland's minister for development cooperation and foreign trade, says it calmed the situation, but there's no reason to celebrate.
- François Bayrou, French prime minister, warns it's a sombre day when an alliance of free peoples resigns itself to submission.
On Wall Street, analysts see the risk of a US recession fading even as higher tariffs threaten growth. Morgan Stanley strategist Michael Zezas predicts slow growth and firm inflation, with trade and immigration controls tempering gains from deregulation and fiscal stimulus.
Markets reacted swiftly: the dollar jumped 1% against the Swiss franc (0.80325), while the euro suffered its biggest daily drop since mid-May.
As young entrepreneurs, policymakers and globetrotters follow developments, this pact will test whether it truly averts a tariff war between the world's top economies or just kickstarts a new chapter in global trade tensions.
Reference(s):
cgtn.com
