Selim Ibraimi- EU and US officials have reached an agreement to avert a trade war that would damage both the EU and the US. Following talks between US president Donald Trump and European Commission (EC) president Ursula Leyen in Scotland, the parties agreed to a 15 percent US tariff on all EU goods.
The US and the EU currently trade $1.7 trillion a year in combined trade, covering a market of 800 million people. For weeks, Brussels and Washington have been working on a deal to avoid imposing steep US tariffs. Meanwhile, the US government says the deal reached in Scotland between the two sides will strengthen the US economy and manufacturing capabilities. According to official US reports, by 2028, “the EU will purchase $750 billion in US energy capacity and make new investments of $600 billion in the US”. The White House, in a press release, announced the content of the agreement reached, which includes several conditions.
In addition to investing $600 billion in the US, the EU has pledged to increase its influence in the energy field. According to the agreement, this will strengthen American dominance in the energy field and reduce european countries’ dependence on other powers such as Russia and China. The statement further states that “the EU and the US will work to eliminate tariffs in various sectors and provide meaningful quotas for other products, which when combined will create significant trade opportunities for market access for a significant amount of US exports to the EU, supporting high-quality american jobs”.
“The EU will work to address several US concerns regarding the requirements of european countries that are burdensome for US exporters. In addition, both sides will commit to eliminating trade barriers to US agricultural exports. This will create an opportunity to simplify the sanitary certificates for US dairy products required by EU countries”. In the area of digital trade, the agreement states that both sides will address unnecessary barriers. The US will maintain zero tariffs on european electronic equipment.
Thus, the US and the EU have entered into an agreement that will increase cooperation, strengthen security, and further expand US exports to european markets. A particular emphasis is placed on the continuation of the purchase of US military equipment by european countries. Not long ago, the EU also announced in a statement that the US-EU transatlantic partnership is very important in this difficult time for both sides. According to the EU, the agreement restores security for citizens, for american and european businesses, while preserving, according to Brussels, “deeply integrated value chains”. According to the EC statement, the main commitments of the EU and the US include the establishment of a single and comprehensive US tariff limit of 15 percent for EU goods. “Providing special treatment for strategic products such as aircraft and aircraft parts from EU countries, generic medicines… return to pre-January levels”. The agreement foresees joining forces in protecting the steel, aluminum, and copper sectors from unfair competition. The US and the EU will further strengthen cooperation in the field of economic security.
“Ensuring reliable access to critical energy and future-oriented supplies remains vital for both sides”. In the area of energy security, the EU has warned that offering new energy supply options will contribute to the EU’s security. “We will replace Russian gas and oil with significant purchases of US LNG, oil, and nuclear fuel,” the EC statement said.
“US AI chips will help power AI giant factories and help the US maintain its technological advantage over others.”
The agreement also includes other important points for both economies as a shield to combat the economic power of asian countries in the US and european markets. Before the meeting in Scotland, US president Donald Trump had threatened the EU with tariffs of 30 percent or more, which, according to Commissioner Von Leyen, would effectively mean the end of EU-US trade. In recent months, the European Commission has also drawn up countermeasures to US plans to impose high tariffs on european products.
While the talks have taken a positive turn, both sides have put their differences behind them for the time being, with the exception of French and Hungarian reactions that say they do not agree with all points of the agreement. yes. As for the Balkan countries, Serbia will face a high tariff of 35 percent imposed by the US. Bosnia and Herzegovina by 30 percent. North Macedonia has lowered them to 15 percent, and Kosovo by 10 percent. The government in Pristina announced that it has changed its policy to zero tariffs on American products. Montenegro and Albania will face a lower tariff of 10 percent.
In the coming years, it remains to be seen whether we will have more american products in the EU and Balkan markets competing with products from China or Turkey. Balkan countries trade more with EU countries, Turkey, China, and Russia. The US, which has helped the Balkans with financial means since World War II and the fall of the Berlin Wall, has ranked below the mentioned countries in terms of trade.
Now is the time to change, and the coming years will show the effect of such agreements made by the US administration. The White House announced that the tariffs will take effect on August 7, 2025. “The measures taken by the US administration are part of a larger strategy to restructure international trade, protect american workers, and reduce the US trade deficit through tariffs.”
The article was written specifically for Portalb.mk. The publication rights are owned solely by Portalb.mk and the author, as per the agreement between them.