U.S. and EU Seal 15% Tariff Deal Ahead of August 1 Deadline

TaiwanPlus News

The United States and EU have reached a landmark framework agreement that will see most EU exports to the U.S. subject to a single 15% tariff, ending months of negotiations and simplifying trade rules across sectors like cars, semiconductors and pharmaceuticals. The deal, announced by U.S. President Donald Trump and European Commission President Ursula von der Leyen, includes exemptions for products like aircraft, semiconductor equipment, raw materials and certain generic drugs.

Transcript

00:00European Commission President Ursula von der Leyen and U.S. President Donald Trump

00:06with a big announcement in Scotland.

00:08Thank you very much. So we have good news.

00:11We've reached a deal. It's a good deal for everybody, I believe.

00:17And I think you were saying this is probably the biggest deal ever reached in any capacity, trade or beyond trade.

00:26A framework trade deal between two of the world's largest economies, simplifying the scheme of U.S. levies.

00:34We have stabilized on a single 15 percent tariff rate for the vast majority of EU exports.

00:43This rate applies across most sectors, including cars, semiconductors, pharmaceuticals.

00:53This 15 percent is a clear ceiling, so no stacking, all inclusive.

01:00Along with the 15 percent across-the-board tariff, von der Leyen says some products will be tariff-free,

01:07including aircraft, semiconductor equipment, natural resources and raw materials,

01:12as well as certain generic drugs, chemicals and agricultural products.

01:17Global markets climbed on the deal's announcement as nations around the world raced to reach deals of their own with Washington

01:24before an August 1 deadline, when they could be hit with high tariffs.

01:29Back in Washington, U.S. Commerce Secretary Howard Lutnick says results of a national security probe into foreign chip imports,

01:37largely from Taiwan, are due in about two weeks, which could see targeted tariffs on semiconductors.

01:44But one country on their own timeline is China, which may see tariffs take effect on August 12.

01:50U.S. Treasury Secretary Scott Besant and Chinese Vice Premier He Lifeng are set to meet in Stockholm on Monday,

01:58hoping to extend the current tariff truce and potentially pave the way for a meeting between Trump and Chinese President Xi Jinping.

02:06The Financial Times reports that Washington has even paused its technology export controls on China to avoid hurting trade talks.

02:15The focus now, mid-August, when key meetings may determine just how high the next tariff hurdle could be.

02:23Chris Ma and Chris Gorin for Taiwan Plus.

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