On Friday 1 August, the United States published the Executive Order officially translating the trade commitments entered into with several countries and entities, including the political agreement validated with the European Union (see EUROPE 13689/1).
The decree delays the application of the planned 15% customs duties on European products until 7 August, giving a brief reprieve to the negotiators, who are working to finalise the details of the agreement (see EUROPE 13692/1).
Products shipped before 7 August and arriving before 5 October will also be exempt from the new duties. Those already in transit or in storage are still subject to the previous duties.
EU products will therefore be subject to a tariff cap of 15%, which includes most-favoured nation (MFN) duties. According to one source, the EU is the only trading partner of the United States to benefit from this treatment, which “avoids piling on customs duties”.
But certain details and figures still do not tally with those announced by the European Union. The White House decree does not reduce customs duties on EU cars from 25% to 15%, nor does it introduce 0% tariffs for so-called “strategic” products, as announced by the President of the European Commission, Ursula von der Leyen, on the day of the agreement (see EUROPE 13690/1).
According to one source, the current decree is not intended to implement these elements of the agreement. The Commission and Washington are still in talks to finalise a joint statement, which should be made public “shortly”.
To see the decree, go to https://aeur.eu/f/i3f (Original version in French by Isalia Stieffatre)