Mixed Reactions as EU Strikes Trade Deal with the U.S.

European companies face mixed sentiments over a U.S. trade deal imposing a 15% tariff on EU goods, lower than the threatened 30% but above past levels. While it brings clarity, concerns over competitiveness persist. Key sectors like chemicals, cars, and wines are particularly impacted.

European companies found themselves in a dilemma on Monday after a new U.S. trade deal was announced. While the deal prevents a tariff escalation to 30% as threatened by President Trump, it implements a substantial 15% tariff on most EU goods, significantly higher than previous rates.

The agreement has redirected fears among industries such as automotive and chemicals, though stakeholders argue that the baseline tariff remains prohibitively high. Wolfgang Große Entrup of the German Chemical Industry Association urged further negotiations to cut tariffs detrimental to European competitiveness.

However, certain products receive exemptions, soothing some industries. Goods like aircraft parts and semiconductors benefit, although the wine and cosmetics sectors face daunting challenges amid negotiations for better terms. The new agreement promises major EU investments in the U.S., offering modest gains in this intricate trade balance.

(With inputs from agencies.)