Skip to content
Industry — Finance — Empowering Your Business Success — Explore Symphony's Tech Universe

United States eases semiconductor tariffs towards EU, deepening collaboration instead

Increased US tariffs on European pharmaceuticals and semiconductors will be capped at 15%, as outlined in a fresh agreement with the European Union (EU), whereas the EU aims to abolish tariffs on all American industrial products.

,   and  Administrator
2 min read
U.S. adjusts semiconductor trade policies with EU, reinforcing collaborative partnerships instead.
U.S. adjusts semiconductor trade policies with EU, reinforcing collaborative partnerships instead.

United States eases semiconductor tariffs towards EU, deepening collaboration instead

The United States and the European Union have reached a new agreement, described as a framework for reciprocal, fair, and balanced trade. This development comes after three weeks of negotiations, during which the US proposed 100% tariffs on European goods, but has since softened its position.

Under the agreement, the US will not impose tariffs exceeding 15% on European pharmaceuticals and semiconductors. This concession is a significant step towards resolving trade disputes between the two economic powerhouses.

The European Commission has committed to provide "additional flexibilities" in the implementation of the Carbon Border Adjustment Mechanism (CBAM) to address US concerns related to treatment of small and medium-sized businesses. However, the agreement does not provide details about these flexibilities.

The EU has pledged to buy $750bn of LNG and energy products from the US until 2028, a commitment that aims to unleash the full potential of the combined economic power of the US and the EU.

In a joint statement, both parties expressed their determination to resolve their trade imbalances. The EU has agreed to continue engaging with the US to achieve more tariff reductions, but has not yet announced any new plans to eliminate tariffs on all US industrial goods beyond the previously stated intention.

The agreement does not reveal any new investments by Europe in strategic US sectors, including the $40bn-worth of AI chips. Europe has pledged to invest an extra $600bn across strategic US sectors, but the specific industrial sectors remain unclear.

The White House statement indicates that the EU has acknowledged the concerns of the US regarding trade imbalances. The EU has not yet made any commitments to invest the promised $600bn, and it remains to be seen how this will be implemented.

The latest agreement between the US and the EU is a significant step towards resolving long-standing trade disputes and fostering a more harmonious trade relationship. Both parties have expressed a commitment to further discussions and negotiations to achieve more reciprocal trade benefits. The full impact of this agreement on both economies and the global trade landscape will unfold in the coming months.

Read also:

Related

Latest