15% Tariffs or Trade War?!
The United States and the European Union are moving closer to reaching a new trade tariff agreement. The two sides are currently negotiating a base tariff of 15% on most European imports, following the pattern previously implemented between the US and Japan. The deadline is August 1, 2025, and if no agreement is reached by then, the US government plans to raise tariffs to 30% on key goods such as cars and pharmaceuticals from Europe.
The EU itself has suspended plans for retaliatory tariffs until early August, hoping for a peaceful agreement. However, if talks fail, the EU has prepared a retaliatory package worth €90–100 billion. US products such as bourbon, Boeing aircraft, and vehicles will be the primary targets of these retaliatory tariffs. The EU also plans to use a special legal instrument called the Anti-Coercion Instrument to restrict US companies' access to the digital sector and public tenders in Europe.
The 15% tariff agreement is seen as a compromise solution that allows both sides to maintain trade stability without resorting to a full-blown tariff war. Some products, such as medical devices and alcoholic beverages, may receive special treatment or exemptions under this agreement. The European Union is also willing to reciprocally lower its tariffs if the US is willing to keep tariffs at 15%.
With the deadline approaching August 1, investors and global market players are closely monitoring developments. A successful agreement would be a positive signal for global economic stability, but if it fails, trade tensions between the two world economic powers could escalate sharply and trigger a domino effect across various sectors.(ayu)
Source: Newsmaker.id
