How should the EU interpret the trade agreement between the US and the UK?
The United Kingdom is the first European country to have reached a compromise with the United States on trade. But some analysts believe the deal sends the wrong signal.
READ MORE : http://www.euronews.com/2025/05/12/how-should-the-eu-interpret-the-trade-agreement-between-the-us-and-the-uk
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The United Kingdom is the first European country to have reached a compromise with the United States on trade. But some analysts believe the deal sends the wrong signal.
READ MORE : http://www.euronews.com/2025/05/12/how-should-the-eu-interpret-the-trade-agreement-between-the-us-and-the-uk
Subscribe to our channel. Euronews is available on Dailymotion in 12 languages
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00:00Last week, U.S. President Donald Trump hailed the trade agreement reached with the United
00:10Kingdom, which he and British Prime Minister Keir Starmer described as historic.
00:15Many economists, however, are questioning the scope of this compromise.
00:19A large proportion of British products will still be subject to a 10% baseline tariff,
00:24in other words, the reciprocal tax imposed in April by Donald Trump.
00:28The agreement could, however, strain ties between the European Union and the United Kingdom.
00:34I think this will cause some irritation in Brussels.
00:36And that's not because there's any direct conflict between the EU and the UK.
00:42This will not jeopardize EU-UK relations.
00:45But it sets a bad precedent.
00:47By allowing these tariffs to remain in place, it enhances the legitimacy of these tariffs
00:54that are against international law.
00:56It's against the agreements that the U.S. has.
00:59So I think it will cause some irritation, but it will not cause any permanent damage to the EU-UK
01:07relations.
01:08The trade deal comes at a time when the European Union is threatening to tax €95 billion worth
01:13of American products imported into member states.
01:16The list, which is subject to consultation, includes agricultural products, as well as automotive, electrical
01:22and aviation equipment, and batteries.
01:25The European Commission also intends to launch proceedings before the World Trade Organization.
01:31It's regarding international law that the trade agreement between Washington and London could cause
01:35difficulties for the EU.
01:37I would not hide that politically it's not necessarily a very good signal, particularly
01:42because for me, beyond improving our bilateral trade relationship, it was an important issue
01:47of the UK and the EU, together with other countries, being able to be at holders of the rules of the
01:53WTO and being able to promote, join the WTO reform.
01:56And that message is a little bit weaker after what happened yesterday.
02:00EU goods were hit with a tariff rate of 20 percent.
02:03The measure has been suspended for the time being, but it's in addition to the 25 percent
02:08tax on European cars and automotive equipment entering the US.