What is the new EU-US trade agreement about?

The new EU-US trade agreement, finalized on July 27, 2025, sets a 15% tariff on most goods exported from the EU to the US, reducing trade uncertainty between the two economic powers.

Which EU industries benefit most from the trade deal?

The automotive sector, including companies like Mercedes-Benz and BMW, benefits significantly as their previous 27.5% tariffs on cars and parts are now capped at 15%. Aerospace and pharmaceutical companies also gain from zero tariffs on certain products.

Are there any exceptions to the 15% tariff rule?

Yes, while most goods fall under the 15% cap, tariffs on EU steel and aluminum remain at 50%, although these are now governed by a quota system. Additional negotiations are ongoing for these sectors.

What commitments has the EU made as part of the agreement?

The EU committed to buying up to EUR 640 billion worth of US energy and EUR 515 billion of US military equipment and investments, supporting US industry during Trump’s second term.

How does this agreement compare to other US trade deals?

This is the largest trade agreement the US has signed since its deals with the UK, Japan, Indonesia, and Vietnam, providing significant clarity and stability for EU-US trade.

When would the previously announced tariffs have taken effect?

The Trump administration had planned to implement 30% tariffs on EU goods starting August 1, 2025, but the new agreement effectively nullifies that plan for most products.

EU-US Trade Deal Sets 15% Tariff on Most Exports

After several months of negotiation, on July 27, 2025, the EU and the US reached a trade agreement on a single 15% tariff rate for the vast majority of EU exports to the US. The trade agreement settled many of the uncertainties on the EU-US trade relationship, the two largest economies in the world. However, although the trade agreement applies to most goods, including semiconductors and pharmaceuticals, there are exceptions to this rule.

Main Elements of the Agreement

Almost all goods imported into the US from the EU are subject to a 15% maximum tariff and are not added to any existing rates. Companies that may potentially benefit the most from this trade agreement are automotive companies, such as Mercedes-Benz, Volkswagen, and BMW, which were subject to tariffs of 27.5% on cars and imported car parts.

Additionally, other EU companies, such as Airbus and Novo Nordisk, will also benefit from the agreement due to zero-for-zero tariffs on all aircraft and their components, certain chemicals, generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials. Regarding the tariffs on EU steel and aluminum, the 50% rate remains in place, but the quota system will replace it as negotiations on this issue continue.

Furthermore, the EU committed to purchasing strategic resources, including oil, gas, nuclear fuel, and chips, totaling up to EUR 640 billion (USD 750 billion) of US energy in the upcoming years. In addition to this, the EU committed to purchasing US military equipment and ensuring that EU companies invest in the US economy during Trump's second term, amounting to nearly EUR 515 billion (USD 600 billion).

Conclusion

Considering the economic impact of the potential 30% tariffs that the Trump administration announced on goods the EU exports to the US, scheduled to take effect on August 1, 2025, the conclusion of the trade agreement brings much-needed certainty and clarity for consumers and businesses. From the moment the US announced the global tariffs, this is the largest trade agreement concluded, after the US signed similar contracts with the UK, Japan, Indonesia, and Vietnam.

Source: European Commission, Reuters