POLITICO’s reporting team breaks down what we know so far:
Energy
What’s in the deal? As part of the agreement, Trump and von der Leyen agreed that the EU would purchase $750 billion of oil and liquefied natural gas from the U.S. — a figure that would also include other energy products such as nuclear fuel. That means $250 billion in new energy purchases each year, which the Commission chief said would also help end the EU’s remaining reliance on Russian imports.
Who wins, who loses? In theory, the deal is a huge win for U.S. oil and gas firms. In practice, experts say it’s unworkable. For starters, hitting that target would require the EU to triple its U.S. energy imports, based on last year’s figures, while asking American firms to divert all their energy flows worldwide toward the bloc — and then some. In comparison, Russia’s total energy sales to the EU totaled just €23 billion last year. Brussels also has limited tools to make that all happen: Imports are firmly in the hands of private firms.
By Victor Jack
Autos
What’s in the deal? U.S. tariffs on cars and auto parts are being reduced to the baseline 15 percent — a level that matches the deal notched earlier this month by Japanese automakers. In exchange, the EU has agreed to lower its car tariffs from 10 percent to zero, trade spokesperson Olof Gill said. The devil is in the details, however, which remain sparse. Under the U.S.-Japan deal, the Asian country will take vehicles approved to U.S. automotive standards. A senior Commission official said the EU deal includes “a commitment to work together … to see where standards are already aligned or where we need to work more closely to align them in the future.” As POLITICO scooped, the executive previously floated the idea of matching U.S. autonomous driving standards, which was mentioned in Monday’s technical briefing as a possibility.
Who wins, who loses? According to the German car lobby, this is a bad deal that will continue to burden the sector. It joined the American auto sector in decrying tariffs on cars and parts produced in Mexico, which remain at the higher 25 percent. The real loser is not the automakers, though, but their workers, according to Ferdinand Dudenhöffer, the director of Germany’s Center Automotive Research. He estimates that up to 70,000 jobs across European car companies and their suppliers could be lost as automakers move production to the U.S. to skirt the 15 percent tariff.
By Jordyn Dahl