IL manufacturing leader: EU trade deal has benefits
[July 31, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – An industry advocate says Illinois manufacturers
could benefit from a new U.S. trade agreement with the European Union,
even though the deal includes tariffs.
President Donald Trump and European Commission President Ursula von der
Leyen announced this week that the EU would pay the U.S. a tariff rate
of 15%, eliminate tariffs on U.S. industrial goods and purchase $750
billion worth of U.S. energy. The agreement also calls for Europe to
make new investments of $600 billion in the United States by 2028.
Illinois Manufacturers' Association President and CEO Mark Denzler said
it’s important to create stability and certainty.
“Certainly American manufacturers can compete with anyone globally if
the playing field is level and fair. This advances that in that
direction,” Denzler told The Center Square.
Illinois companies exported more than $80 billion worth of goods and
services last year, including about $12.6 billion to countries in the
European Union.
Denzler said the impact of tariffs vary by sector but ultimately result
in higher prices.
“Companies will have to make the decision. Is that a cost they can
absorb? Is it something that gets passed on to the consumer? Every
company is going to have to make that decision for themselves,” Denzler
said.
Although the 15% tariff rate applies to most European good, a statement
from the White House said the sectoral tariffs on steel, aluminum and
copper will remain unchanged, with the EU continuing to pay 50%.
Denzler said tariffs can be a hindrance, but they can also be helpful.
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Illinois Manufacturers' Association President and CEO Mark Denzler
during a news conference in Springfield - BlueRoomStream
“Tariffs used appropriately can make sense, particularly against a
country that might be dumping products into the market, such as
China, or stealing intellectual property. Tariffs can be an
appropriate measure when countries are not playing by the rules, but
manufacturers are glad to see an agreement announced by the White
House,” Denzler said.
The European Commission president said the deal will bring stability
and predictability, which is important to businesses on both sides
of the Atlantic Ocean.
When a reporter asked von der Leyen what concessions the U.S. made,
the German official did not respond with specifics.
“The starting point was an imbalance, a surplus on our side and a
deficit on the U.S. side. We wanted to rebalance the trade relation,
and we wanted to do it in a way that trade goes on between the two
of us,” von der Leyen answered.
Denzler said Illinois is a major trading state, one of five in the
U.S. with a $1 trillion economy. |
