European cars and medicines will incur a 15 percent tariff in the United States.
This information is included in a joint statement from the EU and the USA, detailing aspects of the trade agreement established in July.
Initially, it was indicated that European goods would generally face a 15 percent tariff in the USA.
Subsequent negotiations have led to a detailed 3.5-page joint statement about the agreement.
EU Trade Commissioner Maros Sefcovic highlights that the automotive and pharmaceutical industries will gain from this trade deal.
“This is a significant, strategic agreement that we fully endorse. Numerous sectors, including key industries such as automotive, pharmaceuticals, semiconductors, and timber, stand to benefit,” he stated.
However, an agreement to exempt EU-produced wine from tariffs has not been reached, according to Sefcovic.
He added that future discussions on wine and spirits could be possible.
“Regrettably, we could not finalize this matter. But the opportunity for future negotiations remains open,” the trade commissioner noted.
“The EU Commission is clearly committed to bringing this issue to the negotiating table,” he further stated, as reported by Reuters.
Sefcovic also pointed out that the digital sector is not included in the joint statement agreement.
The statement reveals that the EU has agreed to eliminate all tariffs on American industrial products.
Additionally, a variety of American food products will gain improved access to the EU market, according to the statement.
Currently, European cars are subjected to a 27.5 percent tariff in the USA. The new 15 percent tariff will take effect only after the EU enacts specific legislation to dismantle tariffs on American goods, according to Reuters.
The 15 percent tariffs on medicines and semiconductors will not be implemented immediately either.
The USA is presently examining the implications of imported medicines and semiconductors—used in electronics—for national security.
Only after these assessments are concluded will the USA establish tariff rates for these products.
If manufactured in the EU, the maximum tariff will be 15 percent. Currently, either no tariffs or only minimal tariffs apply to medicines and semiconductors.
The President of the USA has frequently warned of imposing steep tariffs on medicines to incentivize companies to relocate production domestically.
/ritzau/AFP
Leave a Reply