Citing three sources familiar with the matter, Reuters reported on Monday that the European Union (EU) is contemplating options to modify its rules on methane emissions, thus facilitating compliance with the United States (USA) with its gas exports.
Key points
- As part of the energy options that are being explored to help in commercial negotiations with the US, the Commission is considering using flexibility in the application of EU’s methane rules, which could benefit US LNG exporters from US LNG.
- The objective would be to avoid weakening the law in general, while technical rules are introduced that could allow US exporters to be considered as if they were following “equivalent” methane rules to those of the EU, and therefore automatically comply with the EU law.
It is worth noting that the US is already the largest GNL supplier in the EU, having increased deliveries while Europe rushed to replace Russian gas after the invasion of Ukraine by Russia in 2022.
Market reaction
The EUR/USD maintains its intact bullish impulse above 1,1500 after these holders. The pair quotes 1.08% higher in the day at 1,1515, at the time of writing.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
