US-EU finalize trade details: 15% tariff on automobiles and semiconductors, EU to buy $750 billion in US energy products

The EU and the US announced the latest details of their trade framework today (21st), reaching an agreement on detailed tariff rates and conditions for timber, semiconductors, pharmaceuticals, and the automotive industry. (Background: Trump predicts steel and semiconductor tariffs could be announced as soon as next week! Bitcoin drops below $118,000, Ethereum falls below $4,600) (Additional Background: US policy proposal: Suggesting Trump use tariffs from other countries to 'buy more Bitcoin', ensuring the greatness of the USA) According to (CNBC) reports, the EU and the US announced the latest details of their trade framework today (21st), reaching an agreement on detailed tariff rates and conditions for timber, semiconductors, pharmaceuticals, and the automotive industry. This agreement is a further clarification of the trade arrangements in multiple key industries after a preliminary framework was reached at the end of July following several weeks of intense negotiations. Agreement Background After prolonged negotiations, the US and the EU ultimately reached a trade agreement at the end of July, setting a unified tariff of 15% on EU goods and requiring the EU to purchase $750 billion worth of US energy products, as well as to make an additional investment of at least $600 billion in the US. At that time, many European political and business leaders believed the agreement was unfavorable to the EU and that some details were still unclear, especially regarding the tariff rates imposed by US President Trump on specific industries. Now that specific details have been released, the tariffs for related industries are as follows: Timber, Semiconductors, and Pharmaceuticals According to the agreement, starting from September 1, the so-called Section 232 tariffs will be capped at 15%, with the US imposing a maximum 15% tariff on EU timber, semiconductor, and pharmaceutical products, which is significantly lower than the 100% semiconductor tariff and 250% pharmaceutical tariff that Trump previously threatened. Senior US officials stated that these tariffs are aimed at balancing the trade deficit and promoting the development of US domestic manufacturing. Particularly in the pharmaceutical industry, where the EU is the largest source of pharmaceutical imports to the US, the tariff cap is set at 15% and will not stack with other EU tariffs. Automotive Industry The automotive industry is also one of the focal points of this agreement. The US and the EU have agreed to impose a conditional tariff of 15% on cars and automotive parts exported from Europe to the US, nearly halving the current 27.5% tariff and lower than the 30% tariff that Trump previously threatened. The condition is that the EU must introduce legislation to reduce industrial tariffs, but only a legislative proposal is needed to initiate this trade exchange. Both sides also stated that they will mutually recognize each other's automotive standards to facilitate trade. However, the German Automotive Industry Association (VDA) still warns that despite the reduced tariffs, the 15% tariff will still impose billions of dollars in annual costs on the German automotive industry, presenting a significant challenge for industry transformation. Other Key Contents At the same time, the agreement also includes the EU's commitment to eliminate all tariffs on US industrial products and provide market access for US seafood and agricultural products. In addition, the EU plans to significantly increase procurement of US military and defense equipment and invest in areas such as artificial intelligence chips and energy, but these commitments are described as 'expected' rather than mandatory, leaving room for uncertainty in implementation. Impact and Outlook This trade agreement provides more certainty for US-EU bilateral trade and reduces the risk of an all-out trade war. However, some economists also point out that the average tariff imposed by the US on EU goods remains high into 2024, which will still negatively impact EU economic growth. For US consumers, tariffs could also lead to rising prices for imported goods, affecting corporate profits and increasing the burden on consumers. In the global trade environment, other trade partners are still negotiating similar trade agreements with the US, and the details of the US-EU agreement may provide effective references for these negotiations, but they also highlight the significant changes facing global trade rules. Related Reports US July PPI explosion) Bitcoin needle drop to $117,000, Trump tariff rings inflation alarm, will the Fed lower interest rates in September? US July CPI report released 'prices hit a new high in June', Trump pressures Powell: tariffs did not exacerbate inflation, Fed to lower interest rates in September US-China tariff war affecting) Bitcoin mining company CleanSpark facing $185 million tariff due to imported BTC mining machines "US-EU finalize trade details: 15% tariff on automobiles and semiconductors, EU to buy $750 billion in US energy products" This article was first published in BlockTempo (BlockTempo - the most influential blockchain news media).