EU imports to the USA remain duty-free: extension until 2025 creates scope for negotiations

EU imports to the USA remain duty-free: extension until 2025 creates scope for negotiations

According to a report by www.faz.net, President Joe Biden has decided to extend the existing agreement on duty-free imports of steel and aluminum from the EU to the USA until December 31, 2025. This measure is intended to end the stalled negotiations with the EU on a follow-up regulation. Concerns about Donald Trump's re-election next year are growing, and the German economy fears negative effects on trade policy.

As a financial expert, I analyze the potential impact of this decision on the market and the financial industry. The extension of the duty-free import of steel and aluminum from the EU to the USA offers the European steel and aluminum industry stability and planning security. This could have a positive impact on the share prices of companies in these industries as investors see less risk due to the longer planning period.

However, the stalled negotiations with the EU could create uncertainty, and the ongoing geopolitical tension in US-EU trade could increase volatility in international financial markets over a longer period. The potential re-election of Donald Trump and the resulting uncertainties in trade policy could lead to more cautious positioning by investors, particularly when it comes to country and currency specific investments.

The German business sector, particularly wholesale, foreign trade and services (BGA), is concerned about the possible effects of Trump's re-election. This uncertainty could impact the business climate and investment in Germany and Europe, which in turn could impact the performance of the euro and other currencies in global trade.

Overall, it shows that President Biden's decision to extend duty-free imports of steel and aluminum from the EU could have far-reaching effects on the market and the financial sector. There is a need to closely monitor developments in US-EU trade relations, as well as the political situation in the US, in order to respond appropriately to potential changes and risks.