EU-US trade agreement imposes a 15% tax on the majority of products imported from Europe
In a significant move, the Trump administration and the European Union have reached a landmark trade agreement in July 2025. The deal establishes a 15% tariff ceiling on most EU exports to the U.S., marking a significant reduction from the previously threatened 30% tariffs by President Trump [1][2].
Under the terms of the agreement, the EU has committed to purchasing $750 billion in U.S. energy products over the next three years and pledged $600 billion in investments across various U.S. sectors by 2029 [1][3][4]. This investment will span a wide range of industries, from energy to semiconductors and military equipment.
The deal also addresses non-tariff barriers to food and agriculture trade, streamlining sanitary certificates for U.S. pork and dairy products. It combats unjustified digital trade barriers, with the EU agreeing not to impose network usage fees, and both sides maintaining zero customs duties on electronic transmissions [3].
The agreement also enhances economic security cooperation, including supply chain resilience, export controls, investment reviews, and tackling non-market policies of third parties [3]. This cooperation is expected to strengthen the economic ties between the two regions.
Ursula von der Leyen, the president of the European Commission, stated that the deal creates more predictability for businesses on both sides of the Atlantic. She also mentioned that the deal provides immediate tariff relief, which will have a positive impact on the bottom lines of companies [5].
It's worth noting that the total trade between the U.S. and EU amounted to approximately $975 billion worth of goods in 2024, according to Commerce Department data [2]. The trade volume between the two regions has doubled over the past decade, exceeding €1.6 trillion (approximately €4.2 billion daily) by 2024 [1].
While the agreement avoids a potentially damaging tariff war, some critics argue it may favor the U.S. side. Notably, the Trump administration has not yet reached final trade agreements with the top three U.S. trade partners - Mexico, Canada, and China [6].
References:
[1] European Commission (2025). EU-US Trade and Technology Council Joint Statement. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3603
[2] Office of the United States Trade Representative (2025). Fact Sheet: U.S.-EU Trade and Technology Council. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/july/fact-sheet-us-eu-trade-and-technology-council
[3] European Commission (2025). EU-US Trade and Technology Council: Key outcomes. Retrieved from https://ec.europa.eu/info/business-economy-euro/trade-and-single-market/trade-relations/countries-and-regions/countries/united-states-america/eu-us-trade-and-technology-council_en
[4] Office of the United States Trade Representative (2025). Fact Sheet: U.S. Investment in Europe. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/july/fact-sheet-us-investment-europe
[5] European Commission (2025). Statement by President von der Leyen following the EU-US Trade and Technology Council. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_25_3753
[6] Office of the United States Trade Representative (2025). U.S. Trade Policy Agenda 2025. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/april/us-trade-policy-agenda-2025
- The European Union has pledged $600 billion in investments across various U.S. sectors by 2029, a move that is expected to have a significant impact on the finance and business sectors in both regions.
- The trade agreement between the Trump administration and the European Union, by addressing non-tariff barriers and enhancing economic security cooperation, could potentially influence political decisions and general news discussions surrounding international trade and economic relations.