EU-USA Customs Accord Now Active!
Breakthrough Trade Deal Between EU and US Establishes 15% Tariff Ceiling on Most Goods
In a significant development, the European Union (EU) and the United States (US) have reached a framework deal to defuse their long-standing tariff conflict. The agreement, announced by US President Donald Trump after a conversation with EU Commission President Ursula von der Leyen on Sunday, establishes a 15% tariff ceiling on most EU exports to the US, including cars, auto parts, pharmaceuticals, and semiconductors [1][2][3].
The tariff for goods other than steel and aluminum imported from the European Union to the US will be 15%, according to the agreement. However, tariffs of 50% will remain on EU steel, aluminum, and copper exports, with the EU and US establishing tariff rate quotas at historic levels to reduce these current high tariffs while maintaining fair competition [1].
The agreement includes the EU's commitment to purchase $750 billion of US energy products over the next three years to 2028, significantly increasing European imports of American energy and reducing Europe's reliance on adversarial sources [1][2][3]. Additionally, the EU will invest $600 billion in various sectors of the US economy by 2029, which adds to the over $100 billion the EU already invests annually in the US, supporting American jobs and economic growth [1][3][5].
Non-tariff barriers are also addressed, with efforts from the EU to reduce regulatory and bureaucratic obstacles that have hindered US industrial and agricultural exports entering the European market, particularly benefiting small and medium-sized American businesses [3].
Top economist and ifo President Prof. Clemens Fuest stated that Germany can live with the 15% tariff, and it's important for the 15% tariff to apply to cars, to waive the extra 25% tariff initially threatened by the US for the automotive industry [1][2]. The agreement was made at Trump's golf resort in the Scottish town of Turnberry.
This trade deal marks a step toward balanced and predictable transatlantic commerce, supporting US manufacturing and energy sectors while ensuring more stable market access to the EU [1][2][3][5].
| Aspect | Details | |-------------------------|----------------------------------------------------------------------------------------------| | Tariffs on EU exports| 15% tariff ceiling on most goods including autos, pharmaceuticals, semiconductors | | Steel, Aluminum, Copper | 50% tariffs remain, but quota systems at historic levels aim to reduce these | | Energy Purchases | EU commits to buy $750 billion in US energy exports by 2028 | | EU Investment in US | $600 billion investment commitment by 2029 | | Non-Tariff Barriers | EU to reduce regulatory hurdles for US exporters, aiding especially small and medium businesses |
Compared to the situation before Trump's re-election, the agreed tariff is a significant deterioration. However, the deal is being hailed as a good one for everyone by Trump, with the EU managing to secure major concessions in return for the agreed tariffs.
In light of the breakthrough trade deal between the EU and US, the tariff for most EU exports to the US, including automobiles, pharmaceuticals, and semiconductors, will be capped at 15%. On the other hand, tariffs of 50% will remain on EU steel, aluminum, and copper exports, with historic-level tariff rate quotas put in place to lower these tariffs while fostering fair competition.
