The trade deal between the US and the European Union, squeezed in days before the re-introduction of Donald Trump’s “liberation day” tariffs, is reflective of the new politics of global trade. Faced with the threat of 30% baseline tariffs from Washington, as well as additional levies on specific sectors, the EU has secured a partial reprieve of a flat 15% tariff on all goods.
Was this the best the bloc could have achieved? In the time available, it may well have been. The 15% rate is higher than the UK secured earlier this year, but it’s significantly below the level applied to China and Mexico, and on par with Japan.
The EU has also managed a “zero-for-zero” tariffs deal on some hi-tech goods, notably semiconductors vital for products like phones and laptops. This is something the UK did not push for or secure in its own framework agreed with the US president.
