EU-US trade deal : lower tariffs and cooperation in energy sector
On 27 July, European Commission President Ursula von der Leyen and US President Donald J. Trump agreed on key parameters of future trade relations. This agreement should be the first step in a process that will be further expanded and continue to improve market access.
As of 7 August 2025, the following should start to apply, arising from the deal:
- Introduction of a single US tariff ceiling of 15% on almost all EU exports currently subject to reciprocal tariffs and on exports of cars and car parts, pharmaceuticals and semiconductors.
- Reduction of tariffs on strategic products such as aircrafts and aircraft parts, certain chemicals, certain drug generics and natural resources to pre-January 2025 levels, while the EU and US have agreed to keep working to add other strategic products to this list.
- Protection of steel, aluminium and copper markets by joint quotas, a 50% reduction in existing tariffs, and coordinated activities against unfair competition.
- Liberalisation of certain trades, particularly the elimination of remaining low EU tariffs on US industrial goods.
- Protection of stable access to energy and technology supplies from the US, including LNG, oil, nuclear products and AI chips worth up to EUR 700 billion.
On Thursday, 31 July 2025, the changes between the EU and the US were formally adopted with effect from 7 August 2025. On that date, the ad valorem tariffs imposed based on the unilateral US decision in April this year as part of Liberation Day have been reversed. This will also influence EU retaliatory tariffs, which will most likely be abolished, leading to an overall reformulation.