Overview

• The trade agreement, effective August 8, lowers most U.S. duties on European imports to 15% in exchange for $600 billion in EU investments and $750 billion in energy and technology purchases.
• President Trump has threatened to revert to 35% tariffs if the EU does not fulfill its agreed investment and purchasing commitments.
• The European Commission has paused planned €93 billion in retaliatory tariffs for six months to uphold the accord under U.S. pressure.
• Tariffs on steel and aluminum remain at 50%, prompting EU ministers to call for binding export-quota mechanisms in further negotiations.
• Eurozone investor confidence fell to –3.7 in August, according to Sentix, signaling growing business skepticism about the deal’s economic benefits.