Global markets rally as US and EU strike trade deal limiting tariffs to 15%
US and EU agreed to cap tariffs on most EU goods at 15%, averting a threatened 30% hike. Steel and aluminium tariffs remain at 50% but only above quotas. Zero tariffs apply to aerospace parts, certain chemicals, and raw materials. The EU will increase purchases of US energy and military equipment.
European stock markets rose on Monday with Germany’s DAX, France’s CAC 40, Spain’s IBEX, and the UK’s FTSE 100 all up. Asian markets mostly followed suit, except Japan’s Nikkei which dipped, News.Az reports, citing The Guardian.
German auto industry welcomed the deal but warned the 15% tariff will still cost billions and impact margins or prices. Audi cut its revenue forecast by €2.5 billion due to tariffs.
Mixed responses from EU leaders. Hungary’s Viktor Orbán criticized the deal as unfavorable, while Belgium’s Bart de Wever called for continued commitment to free trade.
The deal aims to ease trade tensions sparked by US tariffs introduced under former President Trump and avoids further escalation, though it maintains higher tariffs than pre-trade-war levels.
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