Donald Trump's announced tariffs on EU goods are set to take effect, but experts warn the agreement lacks legal binding. Despite Trump's claims, the deal is as uncertain as a note scribbled on a napkin, with no guarantee of compliance from involved parties.
Expert: Trump's Boasts on Tariffs Hold No Real Weight
Expert: Trump's Boasts on Tariffs Hold No Real Weight
On Thursday, Donald Trump's much-discussed tariffs are set to take effect. The EU faces tariffs of 15 percent, but the agreement between the US and the EU is far from solid.
"There is no deal. It's wrong to call it a deal," says economic expert Henrik Isakson to SvD.
During Trump's visit to Scotland last week, he met with EU Commission President Ursula von der Leyen. In front of a gathered press, the two leaders shook hands and announced a tariff agreement.
The agreement means that goods from the EU will be subject to a 15 percent tariff when imported into the US. This is a lower rate than for many other countries, after the president decided in April to impose tariffs on almost all countries worldwide.
The EU has not announced any retaliatory tariffs. Instead, they have stated that any countermeasures could take effect in six months.
Agreement Not Really a Deal
The new tariffs are set to begin on Thursday. However, there is no proper agreement behind the tariffs, making the future uncertain, according to Henrik Isakson, policy manager for trade policy at the Confederation of Swedish Enterprise.
"We can't describe this as knowing what applies and now we're done. It's pointless to delve into the details of the agreement because it is so uncertain," he tells SvD.
He likens the EU's agreement with the US to something as legally binding as a note scribbled on a napkin—essentially not at all.
"Can Boast – Means Nothing"
Several other of Trump's promises are also not legally binding, Isakson argues. For example, he has promised Americans that companies in the countries he imposes tariffs on will also be forced to invest billions of dollars in the US economy. Such a point is included in the agreement with the EU, but also with both Japan and Korea.
However, there is no legal document guaranteeing that companies must invest in the US, and it will be difficult to force them.
"Trump can boast about these figures, but they really mean nothing. Politics and economics in these contexts are completely different," says Henrik Isakson.