US-EU Trade Deal: A Lifeline for the Automotive Industry
A preliminary trade agreement between the U.S. and the European Commission has averted a potential trade war and mitigated threats to the automotive sector. The agreement, praised by German Chancellor Friedrich Merz, is expected to substantially reduce tariffs, offering crucial relief to the export-driven German economy.
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An important trade agreement reached between U.S. President Donald Trump and European Commission President Ursula von der Leyen on Sunday has successfully prevented an escalating trade war, according to German Chancellor Friedrich Merz.
Chancellor Merz highlighted the significant impact of this agreement on Germany's export-oriented economy, particularly the automotive industry. Before the deal, the automotive sector faced tariffs as high as 27.5%, a rate now expected to be reduced to 15%.
The deal represents a major diplomatic victory, ensuring the stability of existing trade relationships and offering much-needed economic relief. The agreement reassures major exporters, especially in Germany, of continued access to the U.S. market under more favorable conditions.
(With inputs from agencies.)
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