Major US-EU Trade Agreement: Winners and Losers Defined**

Tue Jul 29 2025 12:03:58 GMT+0300 (Eastern European Summer Time)
Major US-EU Trade Agreement: Winners and Losers Defined**

The newly announced trade deal between the US and EU raises questions about its implications for various sectors and stakeholders.**


While the US and EU herald a historic trade deal, the ramifications highlight clear winners and losers within industries, economies, and consumer bases.**



The US and the European Union have clinched what is being touted as a monumental trade agreement, following negotiations in Scotland. This accord, while framed as a historic pact, still appears to be a blueprint for future trade relations, lacking some specifics. The implications of this deal are significant, suggesting both positives and negatives for different sectors involved.

**Trump - A Clear Victor**
President Donald Trump has successfully secured what many are calling the largest trade deal to date, marking a significant victory in his administration's efforts to forge new international agreements. Preliminary assessments from analysts like Capital Economics indicate that this trade agreement may result in a modest hit to the EU's GDP while offering substantial tax revenues to the US. However, the long-term benefits of this deal for Trump could diminish depending on upcoming economic data concerning inflation, employment rates, and consumer confidence which may reveal the effects of his trade policies.

**US Consumers - Facing Higher Costs**
On the downside, American consumers could feel the sting of increased living expenses. The recently established 15% tariff on EU imports will add costs to goods, exacerbating the already challenging economic landscape for everyday Americans. This tax implies that a product priced at $100 will now cost $115 after tariffs are applied, a burden that importers typically pass on to consumers, making imported EU goods more expensive.

**Market Reactions - Optimistic Outlook**
Global markets seemed to respond favorably, with stocks in Asia and Europe rising following news of the agreement's framework. Although a 15% tariff remains high, investors have responded positively to the certainty it brings, believing it will stimulate the Eurozone's economy.

**EU Unity - Uncertain Path Ahead**
Despite the initial enthusiasm, the deal's acceptance may be complicated by differing interests among the EU’s 27 member states. Caution and dissent have emerged, with some leaders expressing concerns over potential fragmentation within the bloc amidst ongoing geopolitical challenges.

**Automotive Industries - Mixed Bag**
For EU car manufacturers, the reduction of tariffs from 27.5% to 15% represents a bittersweet victory, as the higher costs still inflict substantial potential losses on the industry, while US carmakers could benefit from reduced tariffs on their vehicles exported to EU countries.

**Pharmaceutical Sector - Ambiguous Future**
The European pharmaceutical industry is grappling with uncertainty, with conflicting reports about the tariffs on their products in the US. While initial optimism for a tariff exemption is fading, the lack of clarity continues to disrupt market confidence.

**Energy Sales - A Windfall for the US**
The deal also signals a significant boost for the US energy sector, as the EU pledges to purchase vast amounts of liquefied natural gas and other energy resources from the US, mitigating dependence on Russian imports, especially in the wake of geopolitical crises.

**Aviation and Agriculture - Winners to Celebrate**
Notably, the aviation sectors in both the US and EU are set to benefit from tariff-free trade on aircraft components, a significant win for industries linked to air travel and manufacturing.

In conclusion, while this new trade deal projects monumental potential for growth and increased cooperation, the reality reflects a set of complex consequences that vary greatly depending on the perspectives of different stakeholders. It remains uncertain how long the benefits will last and whether emerging economic data will uphold the optimistic narrative surrounding the agreement.

MORE ON THEME

Tue, 29 Jul 2025 08:13:06 GMT

Russian Airstrike Targets Prison in Ukraine, Resulting in 16 Fatalities

Tue, 29 Jul 2025 08:13:06 GMT
Tue, 29 Jul 2025 06:05:41 GMT

Trump Calls for 10-Day Ceasefire Deadline for Russia in Ukraine Conflict

Tue, 29 Jul 2025 06:05:41 GMT
Tue, 29 Jul 2025 05:25:40 GMT

France and Germany Express Discontent Over New US-EU Trade Agreement

Tue, 29 Jul 2025 05:25:40 GMT
Mon, 28 Jul 2025 19:52:42 GMT

Trump Pushes for Quick Testimony from Murdoch in Epstein Lawsuit

Mon, 28 Jul 2025 19:52:42 GMT
Mon, 28 Jul 2025 18:09:58 GMT

France and Germany React to Trade Deal with US: Concerns Rise

Mon, 28 Jul 2025 18:09:58 GMT
Mon, 28 Jul 2025 16:24:03 GMT

Trump Claims "Real Starvation" Exists in Gaza Amidst Aid Efforts

Mon, 28 Jul 2025 16:24:03 GMT
Mon, 28 Jul 2025 15:48:47 GMT

**Trump Issues Urgent Ceasefire Ultimatum to Putin as Conflict Escalates**

Mon, 28 Jul 2025 15:48:47 GMT
Mon, 28 Jul 2025 12:08:29 GMT

**Thailand and Cambodia Reach Ceasefire Agreement Amid Border Conflict**

Mon, 28 Jul 2025 12:08:29 GMT
Mon, 28 Jul 2025 00:41:15 GMT

**US-EU Trade Deal Marks New Era in Economic Relations**

Mon, 28 Jul 2025 00:41:15 GMT
Sun, 27 Jul 2025 20:29:50 GMT

EU and US Strike Major Trade Pact, Slashing Tariffs to 15%

Sun, 27 Jul 2025 20:29:50 GMT
Sun, 27 Jul 2025 05:28:27 GMT

Europe Accused of Complicity with Azerbaijan Amid Human Rights Concerns

Sun, 27 Jul 2025 05:28:27 GMT
Sat, 26 Jul 2025 18:53:24 GMT

Trump Urges Immediate Ceasefire Between Thailand and Cambodia Amid Border Clashes

Sat, 26 Jul 2025 18:53:24 GMT
Sat, 26 Jul 2025 04:19:46 GMT

**Global Matcha Supply Crisis: A Growing Thirst Meets Increasing Scarcity**

Sat, 26 Jul 2025 04:19:46 GMT
Fri, 25 Jul 2025 22:26:53 GMT

Iran Reengages with E3 Diplomats for Crucial Nuclear Negotiations

Fri, 25 Jul 2025 22:26:53 GMT
Fri, 25 Jul 2025 19:10:22 GMT

Gaza on Brink of Famine: UN Reports Increasing Malnutrition Crisis

Fri, 25 Jul 2025 19:10:22 GMT
Fri, 25 Jul 2025 14:21:32 GMT

Trump's Scottish Sojourn: Golf and Politics Intersect

Fri, 25 Jul 2025 14:21:32 GMT
Fri, 25 Jul 2025 13:09:29 GMT

Iran Engages in Renewed Nuclear Negotiations with European Powers

Fri, 25 Jul 2025 13:09:29 GMT
Fri, 25 Jul 2025 05:55:24 GMT

Progress Made in US-India Trade Deal Talks, Says Indian Minister

Fri, 25 Jul 2025 05:55:24 GMT
Fri, 25 Jul 2025 00:49:18 GMT

Trump Visits Scotland Amid Golf Course Openings and Controversies

Fri, 25 Jul 2025 00:49:18 GMT
Thu, 24 Jul 2025 21:02:56 GMT

EU and China at a Crossroads: Summit Highlights Tensions and Trade Issues

Thu, 24 Jul 2025 21:02:56 GMT

Follow us

© 2024 SwissX REDD UK ltd. All Rights Reserved.