BRUSSELS : The deal, expected to be officially announced before August 1, addresses long-standing tariff disputes and energy dependencies.
The agreement introduces a unified tariff rate of 15 percent on most European exports to the US — a significant jump from the previous average of 4.8 percent. While this increase affects multiple sectors, the European automotive industry, particularly in Germany, will see some relief. Tariffs on European cars had surged to 27.5 percent following former President Donald Trump’s return to office, compared to just 2.5 percent previously.
In exchange, the EU has committed to importing $750 billion worth of American energy, including natural gas, oil, and nuclear fuel, over three years, aiming to further reduce its reliance on Russian energy supplies.
Read More
- Hamas accepts US-backed roadmap to disarm and exit Gaza governance
- Germany records nearly 10,000 heat-related deaths this year
- US military completes two-hour strikes on dozens of IRGC targets in Iran
- Russia charges Telegram founder Pavel Durov with ‘facilitating terrorism’, issues international arrest warrant
- Meta, BlackRock partner to build USD 14 billion Texas data center campus
To bolster economic ties, European companies have pledged up to $600 billion in investments in the US market. Both sides have also agreed to a list of duty-free “essential” goods, though specific items will be finalised later. These may include American nuts, cheese, dairy products, and pet food, while European industries could benefit from exemptions on machinery, equipment, chemicals, and possibly aviation and medical devices.
Some sectors remain under negotiation, notably pharmaceuticals and semiconductors. Brussels has proposed a maximum 15 percent tariff on pharmaceutical products, but US approval is still pending. Meanwhile, European steel exports will continue facing tariffs of up to 50 percent, with discussions ongoing about implementing a quota system to ease the burden.
While the deal represents a major breakthrough, it still requires ratification by EU member states. The legal mechanism for final approval remains uncertain.
Additionally, the European Commission has warned of retaliatory measures if Washington fails to uphold its end of the bargain — including proposed tariffs worth €93 billion on a list of US goods starting August 7.
For all the latest news from Oman and GCC, follow us on Twitter, Instagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.
