The commercial deal between the United States and the European Union, which was announced during the weekend, reduces some last uncertainty in global markets, and gives companies little breathing to adapt to changing trade dynamics.
The deal determines a 15 % tariff on most commodities and the average trade war may have disrupted economies around the world, according to industry monitors.
“While the newly agreed tariff on most European Union exports to the United States is nearly three times the current rates, it also avoids 30 % of the most of them on the table,” said Gima Thompson, the first adviser at the company Procurement Consulting Proxima. “It provides a degree of certainty in the short term and reaches the average full commercial war, allowing companies to adapt to a greater prediction.”
The highest customs duties were set to become valid 1 August.
Tomson said that the challenge now is that the European Union exporters to determine how they absorb or transfer them to the additional costs of customs duties – factors that may lead to further transformation of the supply chain.
“When the margins are more compact, we will likely see effects on American consumers. Many companies will also explore attacks in the broader supply chain-for example, directed through low countries like Mexico,” she said. “However, our recent global sources indicate that the addition of Mexico to the supply chain provides a set of different risks, from political instability to infrastructure and climate disruption.”
Outside the 15 % definitions, the two sides agreed to the ranks of the definitions on some elements, such as semiconductor equipment, some agricultural products, natural resources, and other materials. The European Union also said that it will buy US energy worth $ 750 billion – to help reduce the dependence of the commercial bloc on natural gas from Russia – with more investments in the American economy.
These moves are a blessing for many American companies, according to Thompson, who said that American exporters “benefit from increasing European Union investments and reaching zero in major categories such as energy, space and connections, but they must also operate to meet the size of the new demand, especially about energy and defense supplies.
“Medicines and lives are still unlawful, while steel and aluminum tariff remain 50 %. Organizational difference, especially if the European Union standards are relaxed to comply with the United States, they may lead to more complexity and reputable risks to European companies.”
