NYT: The EU economy will suffer losses due to the tariff deal with the United States

The European economy will suffer losses after the conclusion of a trade deal with the United States, which involves a reduction in duties from the threatened EU 30% to 15%, Western businessmen, economists and politicians believe.

The New York Times, citing forecasts by the Kiel Institute of World Economy (Germany), writes that Germany, the largest exporter of cars, which will be subject to a tariff of 15%, will suffer the most from the agreement. Economists have calculated that the drop in German production due to the deal could reach 15%. In general, in the European Union, this figure may reach 11%, said Julian Hintz, a scientist from the Kiel Institute.

On July 27, US President Donald Trump and European Commission President Ursula von der Leyen reached an agreement on tariffs, according to which the base rate of duties will be 15%, not 30%. In particular, it will be extended to cars and semiconductors. Chairman The EC indicated that this was "the best that could be achieved." Zero duty is set on some goods — for example, on airplanes and spare parts for them. The EU has agreed to invest $600 billion in the US economy. Within three years, Europe will purchase $ 750 billion worth of energy carriers from the United States and abandon fuel from Russia.

German Social Democrat Bernd Lange, head of the European Parliament's trade committee, said he was "very critical" of the tariffs. In addition, the politician believes that the promised investments in the US economy in the amount of $ 600 billion will be paid for by the industry of the EU itself, Reuters reports.

Wolfgang Niedermark, a member of the board of the German Industry Trade Union, also negatively assessed the agreement: according to him, it is an "inadequate compromise" and the EU "accepts painful tariffs." He noted that the duty of 15% "will have a huge negative impact on the export-oriented industry of Germany."

German Chancellor Friedrich Merz noted that the deal with the United States "avoids unnecessary escalation in transatlantic trade relations." The fact that the duties turned out to be lower than those that were threatened, he saw a plus: according to him, a trade war "could hit the export-oriented German economy hard."

It is not only in Germany that they see risks for the economy due to the deal. The head of the French Federation of Cosmetic Companies, Emmanuel Guichard, said that cosmetics from France will now also be subject to a duty of 15% when imported into the United States, this poses a "significant threat" to production and may create risks for 5,000 jobs.