Europe Inc swerves US trade 'hurricane', laments tariffs

EUROPEAN COMPANIES WERE left wondering on Monday whether to cheer a hard-won US trade deal or lament a still sharp jump in tariffs versus those in place before President Donald Trump's second term.

- REUTERS

A day earlier, European leaders heralded a framework trade deal with the United States that would impose a 15% import tariff on most EU goods, averting a spiralling battle between two allies which account for almost a third of global trade.

Although the deal is better than the 30% rate threatened by Trump and will bring clarity for European makers of cars, planes and chemicals, the 15% baseline tariff is well above initial hopes of a zero-for-zero agreement. It is also higher than the US import tariff rate last year of around 2.5%.