Donald Trump announced 20% of the “mutual” EU tariff entering the United States, claiming that Block 27 of compliance is “theft of America”, charging 39% of the US food rates that enter a single market.
“They charge us 39%, we will levy 20%, so we are essentially half of them,” Trump said, as part of his announcement of “the Day of Liberation” on Wednesday.
But does the EU really impose a high tariff for American products? How was this speed calculated?
EU does not apply 39% on US products
Available data show that the true level of customs rights of the EU is not close to 39%.
The European Commission claims to be applied average tariff Only 1% for American products entering the EU market “taking into account the effective trading of goods.” The European Commission adds that the US administration in 2023 charges about 7 billion euros compared to the EU in 2023 compared to 3 billion euros compared to US products.
The assessment of the World Trade Organization (WTO) sets the average level of customs rights to US products, which are included in the EU a little higher by 4.8%.
In both cases, this value is far from 39%, to which the Trump administration is mentioned.
“In fact, it is not right to say that the European Union charges a fee of 39% in the United States. On the contrary, it is closer to 3%, ”said Andrew Kenningham, chief economist in capital economics, Andrew Kenningham from Europe from Euronews economics.
“The methodology (Trump administration), like such, is neither deserving any reliable nor justified to achieve these numbers,” told reporters with a high EU employee on Thursday morning.
The US administration, however, indicates an unfair “asymmetry” with certain customs indicators. For example, the EU applies 10% of the US cars imports, and the USA is used only 2.5%.
Brussels, however, says that this does not take into account the fact that the United States implies a 25% bet on a pickup furgon in the EU, which are the favorites of American consumers and represent “about a third of all sales of vehicles.”
How does the Trump administration come to these numbers?
In fact, Trump’s giant cardboard table has a simple formula.
The first column – customs rates imposed by American partners – in the visible one, were designed for the commercial deficit of Washington with this partner, and then divide it into its export to the United States.
The second column – SO -SALLLED – the asim speed of the Trump administration – is about half of this speed.
In the case of the EU, taking into account the data of 2024, provided by the European Commission, this will mean a commercial deficiency of 198.2 billion euros, divided for the total export of the EU to the EU to 531.6 billion euros, which led to a 37.2% rate – close to 39% determined by Trump.
New York Times did the same exerciseThe use of numbers determined by the commercial representative of the United States, and found that the result is exactly 39%.
Andrew Kenningham told Euronews that this “strange” formula, which is based only on the commercial shortage of the United States with its partners, is a “completely new way out”, which raised “all by surprise”.
“Honestly, people think it is very strange,” said Kenningham.
“The formula that was used (…) is logic only in the head of President Trump,” – Thierry Mayer, professor of economics in Sciences PO, EURONEWS.
“Therefore, it is the obsessiveness of President Trump by bilateral deficiency that directs this logic.”
“This is not all about the measure of tariff levels or something else that we were told that you can take into account in mutual tariffs,” Kenningham added.
“I think that the fact that tariffs are based on the measurement of a commercial imbalance means that they are actually not mutual tariffs in the sense that most people understand them – we will do with you what you do with us – as the word“ mutual ”was originally explained.
How does the Trump administration justify this logic?
IN declaration A notification on Wednesday evening, the US commercial representative explained that Trump’s mutual tariffs were designed using a complex formula aimed at the “balance of bilateral trade deficits” between the United States and their business partners.
He adds that the calculation takes into account the “combination of national and non -national factors that prevent the trade balance.”
In other words, the cost of 39% was overstated, taking into account a series of measures that Trump’s leadership considers to eliminate barriers to trade, and not just tariffs.
White House Advisor insistedOn Thursday, that the calculation was complex and taking into account the “unconnected barriers.”
Thus, the invited “non -united barriers” include intellectual property rules, environmental and digital norms, licensing requirements and, in some cases, “corruption”.
Representative for US commerce Name A series of specific legislation of the EU, which you consider free trade with the United States, including blocked norms for packaging waste, deforestation, chemicals and your comprehensive books on digital rules, acts of digital markets and services (DMA/DSA).
Another parameter of Trump ordered to consider his team when developing mutual tariffs, there was a value added tax (VAT), claiming that he in itself is a kind of tariff. The EU violently disputed this statement, saying that “VAT is not a business, not to mention the tariff.”
But for Trump it is problematic that foreign governments cover VAT to their consumers about products manufactured in the United States.
The EU VAT is usually high, which is 20%, while the sales tax in the United States is low. California has the highest level of sales in the state, with 7.25%.
The EU insists that its VAT system is “fair and not discriminatory, applying equally the goods produced inside and to imported goods.”