Customs squabble in U.S.: Who bears the cost for the Leyens' billions in pledged expenses?
The European Union (EU) has announced plans to invest a substantial amount in the United States, with EU companies and entities set to make multi-billion dollar investments in the US market over the next decade. This investment, amounting to approximately $600 billion by 2029, is part of the ongoing trade deal framework negotiated under President Trump's term.
President Trump heralded this as a significant boost for the US economy, with the EU committing to buy $750 billion worth of US energy products over the next few years. This investment is expected to bolster American manufacturing, energy, and trade balance.
EU firms and entities operating or expanding in the US market will be responsible for these investments, which are in addition to the existing annual $100 billion EU investment in the US. The deal also includes purchases of US energy and military equipment as part of the broader economic engagement.
Ursula von der Leyen, European Commission President, negotiated on behalf of the EU member states, committing the EU bloc to this level of investment. However, there has been some criticism within the EU about the scale and terms of the deal, particularly concerning the investment commitments and tariffs.
Despite this, it is the EU companies and the European Commission acting collectively on behalf of the Union that will be responsible for delivering these promised investments into the US economy. The specific quantities and distribution among oil, liquefied natural gas (LNG), and nuclear fuels will depend on various factors.
The EU Commission has identified imports of American nuclear technology as a third major pillar for achieving the promised billions. It is not yet known who exactly will buy the American energy, but the purchase will include LNG, oil, and nuclear fuels from the United States.
Interestingly, Russia accounted for 15% of EU LNG imports in the first months of this year. As part of the EU's plans to phase out Russian gas imports completely by 2028, a portion of the $750 billion worth of US energy will likely replace Russian gas in the EU's energy mix.
Commercial decisions regarding the purchases of US energy will lie with the companies, according to the EU Commission. As the details of this historic transatlantic trade deal unfold, it is clear that the EU's investments in the US will have far-reaching implications for both economies.
- The substantial investment of EU companies in the US market over the next decade, amounting to approximately $600 billion by 2029, crossing various business sectors, including finance, energy, and general-news, is a significant move influenced by politics.
- In addition to the existing annual $100 billion EU investment in the US, the EU's commitments to buy $750 billion worth of US energy products over the next few years will have broad impacts on both economies, remarkably influencing the finance, energy, and general-news sectors.
