New Trade Negotiations Result in Revised Tariff Rates for Major Products Between EU and US
The European Commission and the United States have reached an agreement to avert a potential tariff war, as reported by Yahoo Finance and published in Global Logistics. The announcement was made by European Commission President Ursula von der Leyen on July 28, 2025.
Under the new agreement, most European Union goods imported into the United States will be subject to a 15% baseline tariff. This replaces the previously threatened 30% tariff level and marks a significant reduction, although it is still higher than the roughly 4.8% average tariffs that EU goods faced prior to President Trump's term.
The deal includes a "ceiling" tariff rate, intended to provide predictability and stability for businesses involved in transatlantic trade. Sectors such as automotive, pharmaceuticals, timber, copper, steel, and aluminum are among those affected.
The EU's exports of cars and pharmaceuticals to the US have been significant contributors to the trade relationship, with the automotive sector alone accounting for billions in trade value annually. The newly agreed tariff rates are expected to bring stability and predictability to these sectors.
However, no decision has been reached regarding the tariff rate for wine and spirits. The article does not provide specific information about this rate, nor does it mention any new decisions regarding the tariff rates for EU goods exported to the US.
The European Commission has expressed criticism towards the proposed US tariff policy, a topic covered in the article published in our publication Daily. Despite this, the agreement has been hailed as a move to avoid a broader trade war and to balance political and economic factors on both sides.
The US has also agreed to temporarily suspend tariffs on UK and EU goods in a large civil aircraft dispute. These commitments from the EU include large-scale investments and purchases of American energy and military equipment, although details on these commitments are still being clarified.
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[1] Source: IndexBox Market Intelligence Platform [2] Source: our publication Daily [3] Source: Yahoo Finance [4] Source: various news outlets reporting on the tariff agreement
- The reduction in the baseline tariff for EU goods imported into the United States under the newly agreed terms is expected to bring stability and predictability to sectors such as automotive and pharmaceuticals, which play significant roles in global trade.
- Despite previous criticism towards the US tariff policy by the European Commission, the agreement to avert a potential tariff war has been celebrated as a move to balance political and economic factors on both sides, thereby maintaining the general-news status quo in global finance and business.
