WASHINGTON (BRAIN) — A preliminary trade deal between the European Union and the United States would set tariffs on European products at levels not seen since before the Great Depression. But the 15% tariff announced over the weekend is a reduction from the 30% that the Trump administration had been threatening.
"This new tariff level marks a significant increase from the pre-Trump average of 4.8%, signaling a long-term shift in trade policy," PeopleForBikes said in a memo to industry members Monday. "However, the agreement includes zero tariffs on key American exports such as aircraft, certain chemicals, and select generic drugs. The 15% rate also represents a reduction from the 30% tariffs previously considered by the U.S., easing tensions between the two economic blocs."
The agreement with the EU comes days before the "reciprocal" tariffs Trump announced on April 2 were set to take effect, on Aug. 2. The EU agreement follows recently announced agreements with Japan, the Philipines, Indonesia, Vietnam and the United Kingdom, as well as an extended trade ceasefire of sorts with China.
The bike industry continues to watch for agreements with major supplying nations including Taiwan and Cambodia.
The current reciprocal rate on Taiwan imports is 10%, down from the 32% rate announced April 2. The 32% rate is set to take effect Aug. 1 unless an agreement is reached before then. A delegation from Taiwan was expected in Washington last week.
On April 2 Trump announced a 49% reciprocal tariff on Cambodia, a major supplier of bikes and e-bikes to the U.S. This was later reduced to 36% and delayed until Aug. 1. Trump has said he might keep high tariffs on Cambodia and Thailand because of recent conflicts there.
Products from Malyasia, another supplier of bikes and components, will be subject to a 24% tariff effective Aug. 1, unless an agreement is reached.
