At the end of August, the European Union (EU) and the United States (US) published a joint statement announcing that they have reached a trade agreement. This article outlines the key points of the agreement.
- As of 7 August 2025, the US will apply a standard import tariff of 15% on most European goods. If the MFN (Most Favoured Nation from WTO) tariff is higher than the standard import tariff, the MFN tariff will apply.
- The EU intends to eliminate all import tariffs on US industrial goods. In addition, the EU will grant preferential market access for a wide range of US fishery and agricultural products, including, among others, tree nuts, dairy products, vegetables, and fruit.
- From 1 September 2025, the US will apply the US MFN tariff to the following European products:
- Unavailable natural resources such as cork;
- (parts of) aircraft;
- generic pharmaceuticals (including their ingredients); and
- certain chemical substances.
However, if the standard rate is higher than the US MFN rate, the standard rate will apply. The EU and the US are still in discussions about expanding this list.
- The US has committed to applying a tariff ceiling of 15% on (parts of) European automobiles, instead of the current rate of 27.5%.
- For EU pharmaceutical products, semiconductors, and timber, a maximum US import tariff of 15% will apply.
- The US import tariffs of 50% on steel, aluminum, and derivative products remain unchanged.
The effective dates for most of these provisions have not yet been announced.
This publication is provided for your convenience and does not constitute legal advice.
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