[…] In the Scotland accord, the US administration agreed to lower tariffs from the threatened 30 percent to 15 percent on basically all European goods. Aircraft parts, national resources, and critical minerals are exempted from tariffs, and other goods will be added but are still to be discussed. No exceptions were made for cars, which will be subject to the 15 percent tariff instead of the much higher rate previously threatened. Pharmaceuticals are still hit with a 15 percent tariff as of August 1, according to the White House—but only after the US investigations into allegedly unfair trade practices under Section 302 of the US Trade Act have been completed, according to the European Commission. The 50 percent duties on steel, copper, and aluminum remain.
Other parts of the accord are more ambiguous. The European Union, for example, promises to purchase $750 billion worth of American oil, gas, and nuclear fuel, partly to phase out the dependence on Russia that some member states still face. Many experts question the realism of such a sum, however. The European Union also commits to invest a further $600 billion in the United States, in military equipment and other areas. But these commitments are subject to member state competence and are up to countries and individual companies to deliver. The European Commission claims that these sums are more an estimation of what companies have announced already. This investment is non-binding and more of an intention, according to the European side, whereas the White House sees it as a promise until 2028. It is questionable how these investments can be measured and evaluated. […]
The most worrying outcome of this deal is that it confirms the false narrative of the Trump administration as it relates to trade. At the press conference President von der Leyen talked about the need to correct the trade balance and that the United States had been unfairly treated because of the trade deficit with Europe in goods. This concession goes totally against the traditional line of the European Commission and the member states, which have always argued that that the United States has a trade surplus with Europe when it comes to financial and other services, and that trade imbalances are not necessarily bad. Läs artikel