Business

30.07.2025

Trade Agreement Reduces Tariffs Amidst Tensions

French sources reported him saying during a meeting with ministers on Wednesday: “To be free, you must be feared, and we haven’t been enough,” according to Western media. Macron pointed out that the agreement, while providing some clarity for French companies, is only an initial step, emphasizing the continuation of negotiations. Last Sunday, U.S. President Donald Trump announced a trade agreement that reduces tariffs to 15%, ending months of tension and uncertainty about trade relations with the U.S.’s largest trading partner. This tariff rate marks a retreat from Trump’s previous threats, which included imposing tariffs of 30% on July 12 and 20% on April 2, reflecting the success of negotiations in reaching a compromise, according to Western media. Ursula von der Leyen praised the agreement, affirming it “will provide stability and predictability,” which are vital factors for companies on both sides of the Atlantic. This agreement comes after intensive negotiations between the two sides amid fears of a trade escalation that could impact supply chains and increase prices in critical sectors such as pharmaceuticals, automobiles, and agricultural products. It is noted that Trump wrote in messages published on his social media platform, Truth Social, earlier this month: “Imported goods from both the European Union and Mexico will face a 30% U.S. tariff starting August 1.” Trump stated in a message to von der Leyen earlier this month that he would raise import duties on goods sold to the European Union to 30%, three times the initial comprehensive tariffs he imposed. Meanwhile, European Commission President Ursula von der Leyen criticized the new tariffs Trump threatened to impose, but she also affirmed the EU’s readiness to continue working towards reaching an agreement. Von der Leyen stated in a statement that “imposing a 30% tariff on EU exports will disrupt supply chains at the expense of businesses, consumers, and patients on both sides of the Atlantic.” She added, “We remain ready to continue working towards an agreement by August 1.”