EU–U.S. Tariff Deal Takes Effect, Imposing 15% Levy on Most European Goods
- The "Agreement on Reciprocal, Fair, and Balanced Trade" went live July 1, replacing the threat of escalation with a binding framework: the U.S. applies a 15% tariff on most EU exports, while the EU eliminates duties on U.S. industrial goods and grants preferential access for some U.S. agricultural and seafood products.
- The deal, negotiated by Ursula von der Leyen and Donald Trump, was finalized just before a July 4 U.S. deadline and includes safeguard mechanisms; it runs through Dec. 31, 2029.
- Implementation removes a major overhang on transatlantic corporate planning, though the 15% rate is still significantly higher than pre-2025 levels and will hit autos, pharma, and luxury goods hardest.