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US tariffs on EU imports – What does it mean for you?

President Trump and European Commission President Von der Leyen announced on 27 July 2025 a trade framework aimed at averting a transatlantic trade war. Effective 7 August 2025, the U.S. will impose a 15% import tariff on most EU goods. This is a significant reduction from the earlier threatened 30% tariffs.

The EU, on the other hand, has withdrawn its plans to impose ‘retaliatory tariffs’ on U.S. goods. But what if your goods were already in transit? Below is a brief and concise overview of the key elements of the trade agreement between the U.S. and the EU.

Key elements 

  • General Tariff: 15% on most EU exports to the US, including cars, pharmaceuticals, semiconductors. 
  • Automotive sector: Tariffs reduced from previously 27.5% to 15%. 
  • Strategic sectors: Zero-for-zero tariffs on aircraft and parts, select chemicals, generic drugs, semiconductor equipment, critical raw materials & some agricultural goods. 
  • Metals: Aluminium and steel remain subject to 50% tariffs until replaced by quota system; copper newly added. 
  • EU commitments: EU will purchase up to $750 billion in US energy and $600 billion in US investments over Trump’s term (by 2028), plus procurement of American military and digital technologies. 

Implications for the business 

  • Tariff pressure: New 15% import duty impacts many exporters, especially in automotive and pharma. 
  • Sector specific relief: Companies trading in exempted sectors (e.g. aircraft, generic drugs) may benefit, customs classification becomes critical. 
  • Contractual scrutiny: EU’s vague commitments (e.g. defense tech) may trigger procurement or competition law issues. 
  • Legal opportunity: Prior US court decision whether the president can unilaterally impose trade sanctions, litigation risk may increase. 
  • Strategic review: Supply chains, pricing strategies and investment decision may require legal re-alignment.  

What can we do for you? 

  • Conducting a tariff impact audit for your export portfolio 
  • Advising on customs classification for strategic exemptions 
  • Reviewing contracts in light of EU procurement obligations 
  • Preparing for legal challenges  
  • Monitoring developments around quotas, exemptions & disputes 

More information 

Should you have any questions following this article, please do not hesitate to contact one of our colleagues: 

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