EU-US Trade Deal: A Game-Changer Amidst Tariff Tensions

European Commission President Ursula von der Leyen defended a new trade deal with the United States amid looming tariff threats, arguing it offers stability and predictability. The agreement includes a 15% tariff on most EU goods imported to the US and aims to phase out Russian gas by 2028.

In a significant development, European Commission President Ursula von der Leyen has defended a newly established trade agreement with the United States, describing it as "the best we could get" given the impending possibility of 30% tariffs on EU goods.

The deal, announced on Sunday, places a baseline tariff of 15% on EU goods such as cars, semiconductors, and pharmaceuticals entering the US market. A zero-for-zero tariff arrangement has been agreed upon for crucial goods like aircraft parts and select chemical and generic drug products, though tariffs on wine and spirits remain undecided.

Von der Leyen underscored the importance of the deal, saying that it brings "certainty in uncertain times" as the EU aims to eliminate Russian gas imports by January 2028. The agreement also sees the EU committing to purchase $750 billion worth of US LNG and nuclear fuel over three years.

(With inputs from agencies.)