EU-US Trade Agreement: Awaiting Strategic Advancements

The European Union and United States, after reaching a trade framework in July, have yet to finalize a joint statement on tariffs, with only the 15% baseline tariff on European exports enacted. The agreement includes potential tariff reductions on EU car imports and a finalized list for zero tariffs on certain products.

The European Union is currently unable to specify when a joint statement on tariffs with the United States will be issued. Meanwhile, the White House has yet to release an executive order on European car import duties, a spokesperson announced on Tuesday.

Despite a framework trade agreement being reached at the end of July, only the initial 15% baseline tariff on European exports has been implemented as of last week. Previously, EU officials had indicated a joint statement would follow the agreement "very soon," along with executive orders from then-U.S. President Donald Trump concerning key carve-outs.

The agreement envisages a reduction in the current 27.5% U.S. import tariff on EU cars and car parts to 15%. While pharmaceuticals and semiconductors currently face no duties, they are subject to potential increases due to a U.S. import probe, though Trump assured these tariffs would not exceed 15%. Further negotiations persist over reducing tariffs on aircraft and other products, while discussions on spirits and wine rates are anticipated to extend into the autumn.

In the meantime, Europe confronts 50% tariffs on steel and aluminium exports to the U.S., though both parties have agreed on a quota system and a forthcoming "metals alliance" to potentially lower duties.

(With inputs from agencies.)