{"id":29755,"date":"2025-07-28T16:19:08","date_gmt":"2025-07-28T16:19:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/29755\/"},"modified":"2025-07-28T16:19:08","modified_gmt":"2025-07-28T16:19:08","slug":"eu-and-u-s-trade-deal-prevents-further-escalation-but-companies-still-brace-for-higher-prices-impacts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/29755\/","title":{"rendered":"EU and U.S. trade deal prevents further escalation but companies still brace for higher prices, impacts"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

The 15 per cent baseline tariff is higher than last year’s U.S. import tariff rate of about 2.5 per cent. Automakers like Volkswagen were previously facing 25 per cent tariff since April’s global levy.Matthias Schrader\/The Associated Press<\/p>\n

European companies were left wondering on Monday whether to cheer a hard-won U.S. trade deal or lament a still sharp jump in tariffs versus those in place before President Donald Trump\u2019s<\/a> second term.<\/p>\n

A day earlier, European leaders heralded a framework trade deal with the United States that would impose a 15 per cent import tariff on most EU goods, averting a spiralling battle between two allies which account for almost a third of global trade.<\/p>\n

Although the deal is better than the 30 per cent rate threatened by Trump and will bring clarity for European makers of cars, planes and chemicals, the 15 per cent baseline tariff<\/a> is well above initial hopes of a zero-for-zero agreement. It is also higher than the U.S. import tariff rate last year of around 2.5 per cent.<\/p>\n

U.S. and European Union reach trade pact that sets 15-per-cent tariff on EU goods<\/a><\/p>\n

\u201cThose who expect a hurricane are grateful for a storm,\u201d said Wolfgang Gro\u00dfe Entrup, head of the German Chemical Industry Association VCI, calling for more talks to reduce tariffs that he said were \u201ctoo high\u201d for Europe\u2019s chemical industry.<\/p>\n

\u201cFurther escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs.\u201d<\/p>\n

The deal, which also includes US$600-billion of EU investments in the United States and US$750-billion of EU purchases of U.S. energy over Trump\u2019s second term, includes some exemptions, even if details are still to be ironed out.<\/p>\n

Carmakers Volkswagen and Stellantis, among others, will face the 15 per cent tariff, down from 25 per cent under the global levy imposed by Trump in April.<\/p>\n

Stellantis shares rose 3.5 per cent and car parts maker Valeo was up 4.7 per cent in early trade. German pharma group Merck KGaA gained 2.9 per cent.<\/p>\n

Aircraft and aircraft parts will be exempt \u2013 good news for French planemaker Airbus \u2013 as will certain chemicals, some generic drugs, semiconductor equipment, some farm products, natural resources and critical raw materials.<\/p>\n

Shares in the world\u2019s biggest chip maker ASML rose more than four per cent, among the biggest gainers on the pan-European STOXX 600 index.<\/p>\n

The Editorial Board: Trump\u2019s tariff shakedown takes shape<\/a><\/p>\n

Dutch brewer Heineken cheered the deal, with CEO Dolf van den Brink welcoming the certainty it brought.<\/p>\n

The world\u2019s No.2 brewer sends beer, especially its namesake lager, to the U.S. from Europe and Mexico, and has also suffered from the indirect effect on consumer confidence in important markets like Brazil.<\/p>\n

The rate on spirits that could impact firms such as Diageo, Pernod Ricard and LVMH, is still being negotiated though.<\/p>\n

\u201cIt seems that in coming days there could be negotiations for certain agricultural products, zero for zero, which is what the European and U.S. sectors have been calling for,\u201d said Jose Luis Benitez, director of the Spanish Wine Federation. Benitez added that a 15 per cent rate could put Europe at a disadvantage versus other wine exporting regions subject to 10 per cent tariffs.<\/p>\n

\u201cIf there are any exceptions, we hope that the (European) Commission understands that wine should be one of them.\u201d<\/p>\n

Lamberto Frescobaldi, the president of Italian wine body UIV, said on Sunday that 15 per cent tariffs on wine would result in a loss of \u20ac317-million (US$372.6-million) over the next 12 months, though the group was waiting to see the final deal text.<\/p>\n

Others said that the agreement- which followed on the heels of a similar one with Japan \u2013 helped bring greater clarity for company leaders, but still threatened to make European firms less competitive.<\/p>\n

\u201cWhile this agreement puts an end to uncertainty, it poses a significant threat to the competitiveness of the French cosmetics industry,\u201d said Emmanuel Guichard, secretary general of French cosmetics association FEBEA, which counts L\u2019Oreal, LVMH and Clarins among its members.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: The 15 per cent baseline tariff is higher than last year’s U.S. import…\n","protected":false},"author":2,"featured_media":29756,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-29755","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/29755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=29755"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/29755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/29756"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=29755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=29755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=29755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}