President Trump and European Commission President Ursula von der Leyen recently shook hands over a trade agreement that has been described as largely concluded. However, as detailed in a Yahoo Finance article, significant discrepancies remain regarding the specifics of the pact. The summaries released by the White House and the European Commission highlight at least five areas of divergence, both in terms of the agreement itself and the firmness of the commitments.
Read also: The US and EU made a Deal: How Trump’s Deal Reshapes the US-EU Relations?
The White House has emphasized “historic structural reforms and strategic commitments,” whereas the European Commission regards the handshake deal as “not legally binding,” with further negotiations anticipated. Despite President Trump’s assertion that the deal would be “the end of it” and would not require further discussion for years, ongoing negotiations are expected as both sides work towards a legally binding text. A formal joint statement on the deal is anticipated this week.
One area of agreement is the imposition of 15% tariffs on nearly all EU goods, including autos, semiconductors, and pharmaceuticals, which will be exempt from separate Trump plans. However, deeper examination reveals further divides. Commerce Secretary Howard Lutnick acknowledged ongoing negotiations, stating that “there’s plenty of horse trading still to do,” while maintaining that the “fundamentals” are set.
On the matter of new European investments in the US, the US summary describes $750 billion in energy and $600 billion in corporate investments as firm commitments. The European side, however, uses less definitive language, indicating an “intention to procure” additional energy and “expressed interest” in further investments. Additionally, while Trump has claimed European markets will be “totally open,” the European summary suggests only “limited quantities” of “certain non-sensitive” agricultural products will be allowed.
Another contentious point is the US assertion that Europe will purchase military equipment worth hundreds of billions of dollars, a provision not mentioned in the European summary. As trade negotiations continue, stakeholders await a comprehensive and coherent joint statement to clarify these discrepancies.
