Partial Details of U.S.-EU Trade Pact Disclose Some European Winners and Losers

The United States and the European Union are firming up the details of the tariff deal President Trump announced last month but there is sobering news for the continent’s alcohol industry.The two sides issued a joint statement on Thursday laying out a framework of the agreement. It is the first step in a process that could expand in the future to cover additional areas, including wine and spirits, which are a major unresolved issue for the Europeans.The European Union intends to eliminate tariffs on all American industrial goods. The framework states that the bloc will also provide preferential market access for a wide range of American seafood and agricultural goods — including tree nuts, dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat.“This is a serious, strategic deal,” a trade negotiator for the European Union, Maros Sefcovic, said at a press conference at Brussels on Thursday.The United States will apply a 15 percent tariff rate on most products coming from the EU. There are carveouts allowing lower tariffs on unavailable natural resources such as cork, as well as on aircraft and aircraft parts, generic pharmaceuticals, and chemical precursors.The tariff rate on autos imported from the European Union will drop to 15 percent from 27 percent.“This is good news for our automotive industry, which has been bleeding cash over the past several months,” Mr. Sefcovic said. He added that they are seeking to get the new automobile tariffs applied retroactively to August 1.The two sides also announced that they intend to accept and provide mutual recognition of each other’s automobile standards, which is expected to cut costs for the industry on both sides of the Atlantic. The agreement calls for the European Union to buy $750 billion worth of American liquified natural gas, oil, and nuclear energy products through 2028. The bloc also intends to purchase at least $40 billion worth of American AI chips.The European Union is promising to invest an additional $600 billion in the United States through 2028 and increase purchases of American military and defense equipment.Thursday’s statement did not mention a carveout for wine or liquor, meaning tariffs on those imports will remain at 15 percent.America is one of the largest markets for European alcohol, which has traditionally been tariff-free.European Union officials say they will continue the fight for an exemption for alcohol and spirits and say they could be addressed later as the agreement expands.“These doors are not closed forever,” Mr. Sefcovic said. “We’ve been clear that this is very important for us.”Mr. Sefcovic added that it won’t be easy to come to an agreement on eliminating tariffs for alcohol. “It won’t be tomorrow,” he said.

Partial Details of U.S.-EU Trade Pact Disclose Some European Winners and Losers

Partial Details of U.S.-EU Trade Pact Disclose Some European Winners and Losers

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