The president of the European Commission, Ursula von der Leyen, said Sunday night that the commercial agreement reached with the United States (USA) on Sunday is “the best we could get” and should not be underestimated given the imminent threat of tariffs of 30% that had been on the EU, according to Reuters.
Outstanding comments
The agreement was the best thing that could be achieved.
The agreement is a stabilizer, not accumulation of tariffs, or multiple rates.
The 15% rate is a roof and becomes permanent.
No digital rules or technological regulation were mentioned.
The alternative was a commercial war agreement.
It is a stabilizer that will result in higher tariffs compared to low Biden.
Market reaction
At the time of writing, the EUR/USD is traded 0.11% higher in the day at 1,1755.
Tariffs – Frequently Questions
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.
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