Washington DC [US], August 22 : The White House Trade Advisor Peter Novarro on Thursday (local time) unveiled details of the EU-US trade deal, highlighting a major milestone in Washington's effort to achieve "fair trade" with its partners.
Speaking about the trade deal, Novarro said that the EU has agreed to reduce "all their tariffs" to zero, while US continue their global tariff to fight the trade deficit at 15 per cent.
"We get Europe reducing all its tariffs to zero. We continue our global tariff to fight the trade deficit at 15% Wow. Secondly, we will impose 15 per cent tariffs on autos. It's a drop from the 25 per cent, but remember, before President Trump took office, the tariff was 2.5 per cent compared to 10 per cent in Europe. So that's a great win," The White House Trade Advisor said.
"We maintain completely our tariffs on steel and aluminium without exemptions or exclusions, and we're getting USD 750 billion worth of LNG purchases. We're receiving USD 600 billion in investment in the US, specifically in strategic sectors that help secure and make our supply chains more resilient. And we're getting Europe to provide more of our arms in cooperation with the uplifted NATO effort," Novarro said.
"We maintain completely our tariffs on steel and aluminium without exemptions or exclusions, and we're getting $750 billion worth of LNG purchases. We're receiving USD 600 billion in investment in the US, specifically in strategic sectors that help secure and make our supply chains more resilient. And we're getting Europe to provide more of our arms in cooperation with the uplifted NATO effort," he added.
Novarro lauded Trump's trade policy for the "magnificent" achievement and said, "We're ushering in a completely new and beautiful spirit and environment of cooperation with Europe. And nobody would have imagined the success of this. Anybody who criticises Trump's trade policy, including the courts right now, simply has to look at this magnificent achievement that President Trump has secured, not just for the American people, but for Europe and the security of the world, even first."
Earlier, the Trump administration informed that the EU have agreed to remove all tariffs on U.S. industrial goods and expand preferential access for American seafood and agricultural exports, The Hill reported.
In return, most EU products including pharmaceuticals, semiconductors, and lumber will be subject to a 15 per cent tariff. The 27-nation bloc also committed to directing $600 billion in corporate investments into the U.S. and to purchase at least $750 billion worth of American energy over the next three years, the White House said.
"This Framework Agreement will put our trade and investment relationship - one of the largest in the world on a solid footing and will reinvigorate our economies' reindustrialisation," the statement noted.
"It reflects acknowledgement by the European Union of the concerns of the United States and our joint determination to resolve our trade imbalances and unleash the full potential of our combined economic power."
In July, Trump described the accord as "the biggest deal ever made," while von der Leyen called it a "huge deal" that would bring predictability and stability.
As part of the deal outlined Thursday, the EU agreed to purchase at least $40 billion worth of American artificial intelligence chips for its computing centres. The agreement also stipulates that the 15 per cent tariff on European pharmaceuticals will be capped and not subject to additional duties.
Starting September 1, additional European products including aircraft, aircraft components, and chemical precursors will also face the 15 per cent tariff, The Hill reported.
EU Trade Commissioner Maros Sefcovic described the arrangement as "the most favourable trade deal the US has extended to any partner," CNBC reported, while noting that it should be considered a first step toward deepening U.S.-EU economic ties.
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