Which industries may face penalties under the fresh EU-US trade accord, potentially impacting automotive and textile sectors?
In the realm of economic news, the podcast "Economy Day by Day" stands out as a reliable source for concise summaries of national and international economic numbers. Broadcast daily, this podcast can be found not only on its official platform but also on Expresso.pt.
Recently, the focus has been on the agreed tariff between the United States and the European Union, a topic that has been the subject of much discussion. Contrary to some predictions, the agreed tariff exceeds the 10% projected by the OECD and the ECB, with a rate of 15% imposed on most European Union exports starting from 2025.
This tariff is expected to have a modest negative impact on the EU's GDP, with estimates suggesting a decline of 0.2% to 0.8% in GDP for the EU as a whole. The impact varies among EU member countries, with those having significant exports to the US, such as Germany, Italy, and Ireland, being more affected.
The automotive sector, in particular, is highlighted as a pressured industry due to the tariffs, with the rate falling to 15% from previously announced higher rates but still substantially above the pre-tariff level of 2.5%. The broader impact on prices and trade distortions is acknowledged, but the EU economy is less affected than the US economy, which faces larger GDP losses (around 1%) and inflationary pressures from tariffs.
The podcast "Economy Day by Day" does not predict when more pronounced effects of the tariff between the United States and the European Union are expected to start, nor does it provide any new information about the impact of the tariff on GDP. However, it does discuss the big news of the week in economics, including this significant development.
According to the Bank of Portugal, more pronounced effects of the tariff are expected to start in 2025. The agreed tariff is a topic of ongoing discussion, with the podcast serving as a valuable resource for those seeking a clear and concise summary of the current state of affairs. The podcast "Economy Day by Day" is available on various podcast platforms, including Expresso.pt, where economics journalists discuss the podcast on Saturdays.
- The automotive industry, a significant exporter to the US, is under pressure due to the increased tariff between the United States and the European Union, with the agreed rate of 15% posing a challenge for European Union countries like Germany, Italy, and Ireland.
- The agreed tariff in the finance sector, particularly in automotive transportation, is anticipated to significantly impact the EU economy, with more pronounced effects expected to start in 2025, as stated by the Bank of Portugal.
