After the agreement between the US and Japan on Tuesday, Washington and Brussels seem to be close to an agreement that would impose 15% tariff Financial Times (FT).
The European Union (EU) could agree on reciprocal tariffs after Trump delivered a letter with 30%tariffs, which would come into force on August 1, according to three people close to this matter, who revealed this to the FT.
The FT mentioned that “both parties would renounce tariffs on some products, including aircraft, alcoholic beverages and medical devices, people said.”
People familiar with the issue understood that the minimum 15% tariffs would include existing taxes. Tariffs on cars, currently in 27.5%, would fall to 15%.
Despite this, the EU will continue to prepare a package of retaliation tariffs of 93,000 million euros if an agreement is not reached before August 1.
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.
