U.S. President Donald Trump announced a new trade deal with the European Union. The agreement, reached with EU Commission President Ursula von der Leyen, will impose a 15% tariff on most goods from the EU, a reduction from previously threatened tariffs had a deal not been reached before the August 1 deadline.
"I think it's the biggest deal ever made," President Trump said about the agreement, emphasizing its significance amidst ongoing trade conversations.
Von der Leyen echoed Trump's sentiment, stating, "It's a good deal. It's a huge deal," and acknowledged the challenging negotiations that led to the agreement. She noted that the 15% tariff rate represented the best possible outcome for Europe and described Trump as a tough but fair negotiator.
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The new tariff agreement will affect the EU, a bloc of 27 nations, and is particularly relevant for U.S. imports from Europe, which include significant categories like pharmaceutical products, medication, and vehicles. The U.S. also remains the largest export market for the European Union.
Despite the optimism surrounding the deal, questions linger about the potential impact on American consumers. There are concerns that higher prices could eventually trickle down as a result of the tariffs, though concrete effects have yet to be seen.
The agreement with the EU represents President Trump's fifth trade deal in recent weeks, following agreements with the United Kingdom, Japan, Vietnam, and Indonesia.
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U.S. Commerce Secretary Howard Lutnick confirmed that the August 1 deadline for the new tariffs is firm, telling Fox News on Sunday that there won't be any more extensions or grace period.
“No extensions, no more grace periods," he said. "Aug. 1, the tariffs are set, they’ll go into place, Customs will start collecting the money and off we go." He added, however, that President Trump is still open to negotiation and "he's always willing to listen."
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