The initial reactions to the trade deal reached on Sunday between the US and the European Union (EU) are moderately positive. According to ING economist Carsten Brzeski, the deal “seems to have averted worse scenarios, which is excellent news.”
An escalation of trade tensions between the US and the EU would have been a serious risk to the global economy. This risk appears to have been averted,” said the bank’s expert. “For the EU, today’s agreement is probably as good as it could get,” he estimates.
“In recent days, the EU itself had proposed a tariff of 15 percent. The mere fact that steel, aluminum, and pharmaceutical products are not included shows that the EU had to concede even more during the negotiations.” According to Brzeski, there is still a caveat. The deal is only truly finalized when everyone has signed it. “In the European context, this still means approval by the European Parliament and all national parliaments.”
With the conclusion of the trade agreement, uncertainty for companies is temporarily coming to an end. At the same time, maintaining a general tariff of 15 percent on all European products remains a particularly painful measure for entrepreneurs, responds employers’ organization VNO-NCW.
Also, maintaining the tariff of 50 percent on steel and aluminum, according to the lobby group for Dutch businesses, has an “enormous impact on companies in that sector.” “It is therefore important that the European Commission continues to engage with the US in the coming period regarding further tariff reductions and improved trade agreements for important Dutch sectors and companies.”
Schoof calls this the best possible result
Caretaker Prime Minister Dick Schoof calls the trade deal that the European Commission concluded with the United States on Sunday “the best possible result.” He announced this in a message on X. The agreements made are “of great importance for an open economy like ours,” said the Prime Minister.
Schoof points out that the Netherlands exports over 50 billion euros worth of goods to the US annually. “Of course, no tariffs would have been better, but this agreement brings more clarity for our companies and more stability in the markets. It is now important to work out the agreements as quickly as possible.”
In addition, the Prime Minister emphasizes the importance of “a strong and competitive Europe, with fewer rules for a well-functioning internal market and fewer dependencies through a broad network of trade agreements.”