Cool Down Brussels Takes A Relaxed View of the USA Customs Deal

Source: dpa 1 min Reading Time

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The EU probably sees no signs that US President Donald Trump wants to destroy the customs agreement concluded last summer ...

After US President Donald Trump once again resorted to his favorite weapon, tariffs, concerns rose in the EU that the so-called tariff deal could become invalid. But it looks as if the sea remains relatively calm ...(Image: F. Schneidler)
After US President Donald Trump once again resorted to his favorite weapon, tariffs, concerns rose in the EU that the so-called tariff deal could become invalid. But it looks as if the sea remains relatively calm ...
(Image: F. Schneidler)

According to a statement from Brussels, the USA has signaled that it will comply with the current agreements. At least that is what a spokesperson for the EU Commission said. However, they are still waiting for a clear explanation of how the whole thing is to be implemented in future. The main focus is on the aspects of reliability and predictability. The unnamed spokesperson pointed out that the new US system, which came into force on Tuesday, largely complies with the agreements. The reason for this positive news is that only an additional duty rate of ten percent has been introduced, which is added to the goods-specific standard duty rate (MFN tariff).

If Nothing More is Added, the Customs Deal Will Remain in Place

As is well known, Trump reacted following a decision by the US Supreme Court because the justification for a large part of the Republican's previous tariffs was declared unlawful. This caused concern in the EU. However, the majority of EU exports are below the upper limit of 15 percent agreed with the USA if the new ten percent is added to the MFN tariff, as explained by Brussels. Only for a limited number of products, where the MFN tariff is above five percent, does it exceed the limit of the agreement. A solution would therefore have to be found for these cases. Specific examples of the goods in question are to be announced shortly. The current customs system is currently only valid for 150 days. If nothing more happens, the deal with the USA will run as agreed.

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