US-EU tariff negotiations are settled! Starting from 8/1, a 15% tariff will be imposed on Europe, and the European Union will inject 600 billion k for tariff benefits.

U.S. President Trump and European Commission President Ursula von der Leyen reached a tariff agreement this morning on July 28, (, imposing a 15% tariff on European goods starting August 1. This successfully defuses the retaliatory tariff trade war, with both sides emphasizing that this agreement can bring long-term stability to the economy.

Before the deadline of the tariff protocol on 8/1, the US and Europe reached an agreement.

Trump and von der Leyen jointly announced this morning, July 28, that the United States will impose a 15% tariff on goods from EU countries, effective August 1. Both sides stated that the protocol will help stabilize the market and avoid economic shocks.

Trump said this is "one of the biggest protocols," and von der Leyen also said it can bring "stability and predictability."

Whether metals and pharmaceuticals are subject to a 15% tax rate is a matter of differing opinions from both sides.

Trump initially stated that the 15% tax rate only applies to "cars and other goods" from Europe, excluding pharmaceuticals and metals. However, Von der Leyen later held a press conference stating that the 15% tax rate covers pharmaceuticals, chips, cars, and other goods, and it will not be stacked on top of existing industry-specific tariffs.

The metal component will reduce the tax rate and implement a quota system, setting a certain import volume standard to avoid high tariffs. She emphasized:

"The pharmaceutical part is also 15%. How the President of the United States will handle global pharmaceutical policy in the future is another matter."

The US-EU negotiations ended dramatically, pulling back from the brink of a 50% tariff to the negotiating table.

The negotiations were once on the brink of collapse, especially the issue of whether "pharmaceuticals" would be subject to a 15% tariff, which became the most contentious point. According to Bloomberg, the EU originally expected that most pharmaceuticals would be taxed. If the agreement had not been reached, Bloomberg estimated that the average effective tariff rate in the U.S. could soar from 13.5% to 17.9%. Now, with the agreement in place, it will be controlled at around 16%.

Although both parties have reached a consensus on major goods, the EU's exports of steel and aluminum still maintain a 50% heavy tax, while aerospace products temporarily maintain a 0% tax rate. Both sides are discussing a steel and aluminum quota system to limit the import volume of high-tariff goods.

Trump has been exerting pressure over the past few months, repeatedly threatening to impose a 50% tariff on the world. In May, he specifically named EU products for a 50% tariff, but it was later reduced to 30%, which changed the attitude of the EU negotiators. The EU had also prepared to retaliate, planning to impose taxes on approximately 109 billion USD worth of American goods. After multiple negotiations, both sides finally succeeded in this meeting, avoiding further escalation of the trade war.

The European Union has committed to massive investments and purchases from the United States, exchanging chips and pharmaceuticals for a 15% tax rate.

Trump stated that the EU agreed to purchase $750 billion worth of American energy products and invest an additional $600 billion in the U.S. in order to apply a 15% tax rate on chips and pharmaceuticals, while also opening the European market to tax-free imports of certain American goods and significantly purchasing American military weapons.

But Van der Leyen added that the tax rates concerning European spirits and related alcoholic beverages have not yet been determined and will be addressed later.

The EU accepts unequal protocols in exchange for trade stability.

According to Bloomberg citing remarks from EU officials, the officials stated that the protocol is somewhat unequal, but at least it allows for dialogue and avoids escalation of the situation. von der Leyen also stated that this negotiation was originally about trade imbalances, but she pointed out:

"We hope to achieve a balanced trade, allowing trade between the two major economies to continue in a stable manner."

Currently, the United States is also negotiating similar tariff arrangements with countries such as Japan, Indonesia, South Korea, Switzerland, and Taiwan, which include setting the car tax rate at 15~20%.

This article discusses the US-EU tariff negotiations! On August 1, a 15% tax rate will be imposed on Europe, and the EU will inject 600 billion dollars for tariff concessions. This was first reported by Chain News ABMedia.