European imports to face 15% tariffs following Trump’s trade agreement

Trade Framework Announced by Trump and EU Leaders

WASHINGTON – Over the weekend, President Donald Trump and leaders from the European Union revealed a new trade framework, which includes a 15% import tax on goods from the EU. This announcement comes just days before a voluntary deadline related to emergency fees.

The agreement stipulates that a 15% tariff will be applied to most products from the EU’s 27 member nations, with some exceptions. This rate also extends to vehicles, alongside a previous 25% tariff on foreign cars that was introduced by Trump in April. The higher tariffs on steel and aluminum will remain unchanged for the EU, although some products—including aircraft—will be exempt from these duties.

Essentially, customs duties are taxes that businesses pay to the US government when importing goods.

“Fifteen percent shouldn’t be underestimated, but it was perhaps the best outcome we could achieve,” stated Commissioner Ursula von der Leyen during a press conference.

This agreement bears similarities to an earlier trade deal with Japan, in which the EU pledged to invest $600 billion in the US over Trump’s term and committed to purchasing $700 billion in US energy resources over the next three years. This investment is partly aimed at reducing reliance on Russian fossil fuels.

“Fundamentally Re-Adjusted”

A press release from the White House characterized this trade agreement as a “radical reconciliation” of economic relations between the world’s two largest economies.

According to census data, in 2024 the US imported about $235.8 billion more from the EU than it exported. Trump had threatened to escalate tariffs on a range of products from the EU, Japan, and other partners, setting an August 1 deadline for these potential increases.

He had earlier announced tariffs in April but had to suspend them after the global markets reacted negatively. This situation led to a trade conflict with China. At one point, US tariffs had surged to 145% before both parties engaged in negotiations.

Legal Challenges Looming

As part of the president’s “liberation day” on April 2, Trump revealed a 10% tariff on all foreign products, surprising many with the addition of a mutual import tax for countries with trade imbalances with the US.

Trump asserted that this new obligation was necessary due to a national emergency regarding trade imbalances. In February, he had made history by imposing tariffs under the 1977 Emergency Economic Powers Act, responding to illegal fentanyl smuggling from Canada, Mexico, and China.

These emergency tariffs are central to ongoing legal cases in the US Federal Court. The lawsuits, brought forth by a coalition of twelve Democratic state attorneys general, argue that only a small number of businesses should not have the power to impose tariffs under emergency laws. The US International Trade Court had previously ruled on May 28 that Trump’s emergency tariffs were unconstitutional.

States involved in the lawsuit include Arizona, Colorado, Maine, Minnesota, Nevada, New Mexico, and Oregon. The lead business plaintiff is VOS Secrets, which imports wine and spirits from 16 countries. Other plaintiffs include manufacturers from Utah, Virginia, Pennsylvania, and Vermont.