LONDON, July 28 (Reuters) - The European Union and the
United States announced a tariff deal on Sunday that will see
most EU exports face a 15% tariff, nearly three months after
Britain locked in a 10% baseline tariff rate.
EU leaders have said their deal offers more certainty given
the threat of higher U.S. tariffs from August but some
politicians have criticised it as "unbalanced" and worse than
Britain's deal.
The details of the two deals paint a more complicated
picture than the headline figures suggest, and not all the small
print of the EU deal has been confirmed.
Here is a comparison of what we know about the two deals.
BASELINE TARIFFS
The EU has agreed a 15% baseline tariff for most of its
exports to the United States. While this is lower than a rate of
up to 30% previously threatened by U.S. President Donald Trump,
it is higher than the baseline tariff rate of 10% which applies
to British exports.
However, under the EU deal, 15% is the maximum tariff, and
isn't added to any existing rate. For Britain, the 10% base rate
is in addition to the "most-favoured nation" (MFN) rates that
the U.S. applies as a minimum to specific goods imports from all
its trade partners, so the effective tariff rate is often
higher.
For instance, the UK Fashion and Textile Association has
highlighted that certain luxury products face an MFN tariff of
around 35% in the U.S., despite a "baseline" rate of only 10%.
PHARMACEUTICALS
The U.S. is to announce the result of its so-called Section
232 trade investigations into certain sectors in a few weeks and
decide on tariff rates.
The EU-U.S. deal already determines a 15% tariff for
European pharmaceuticals, and the results of the investigations
will not change that, U.S. officials said.
In its deal with Britain, the United States said it would
negotiate "significantly preferential treatment outcomes on
pharmaceuticals", contingent on the outcome of the 232
investigations.
Asked if Britain would be impacted by tariffs on the
pharma sector in August, Trump said that he could deal with
Britain on pharma and he didn't think the sector would be a
"block" in talks.
In the meantime Britain faces no tariffs for its
pharmaceuticals. Britain also pledged to try to improve the
overall environment for pharma firms operating in the country,
but it is tussling with multinationals over drug pricing.
STEEL
Tariffs on EU steel and aluminium exports will stay at 50%,
but von der Leyen said these would later be cut and replaced by
a quota system.
British steel and aluminium exports face a 25% tariff in the
United States, which both sides have agreed will go down to zero
once talks over quotas and supply chains are concluded.
Those talks have stalled over "melted and poured" rules
about where the steel originates and how it is processed.
Britain's Tata Steel has imported steel from India and the
Netherlands after shutting blast furnaces last year, so Britain
is seeking an exemption from a U.S. demand that steel needs to
be "melted and poured" in Britain to qualify for lower tariffs.
AUTOS
Car exports from the EU to the U.S. face the baseline tariff
of 15% in the deal struck on Sunday. While full details have not
been published, neither side mentioned a quota for the number of
cars covered by the rate.
Britain has negotiated a lower tariff of 10% for its car
sector but it also has a 100,000-vehicle quota which leaves
little room for export growth. Above that quota, British car
exports face a tariff of 25%.
AEROSPACE
The EU will face no U.S. tariffs on aerospace exports,
pending the outcome of a Section 232 probe into the sector.
Britain also has no tariffs on its aerospace sector after
its deal with Washington reduced them from 10%.