Fedil, a cross-sector economic federation in Luxembourg, has expressed strong dissatisfaction with the trade agreement reached between the European Union and the United States on Monday.

While the deal may help ease transatlantic trade tensions, Fedil warned that it could negatively affect supply chains and increase price pressure on both sides of the Atlantic. Of particular concern is the reintroduction of a 15% tariff on European imports, a significant increase compared to the rates set in April.

Luxembourg's industrial sector is especially alarmed by the continued 50% tariff on steel and aluminium imports from the EU, which will remain in place until both sides agree on a new percentage-based system.

Despite these concerns, Fedil did acknowledge some reassuring aspects of the deal. The aviation sector will be spared new tariffs, and the expected 27.5% duty on vehicles will instead be lowered to 15%.

Still, Fedil issued a cautious warning: the agreement could open the door for goods to be rerouted into the EU from non-EU countries, potentially distorting the market. The organisation urged the European Commission to prepare appropriate countermeasures to address such risks.