Update: August 21, 2025 — US-EU Joint Statement Published
The US and EU published a detailed Joint Statement on a United States-European Union Framework on an Agreement on Reciprocal, Fair, and Balanced Trade, adding specifics to the political agreement announced July 27 at Turnberry, Scotland.
The core deal: most goods coming into the United States from EU member nations are subject to a 15% tariff — an all-inclusive rate that serves as a ceiling, meaning no additional stacking of other tariffs on top. For goods already subject to an MFN column 1 duty of 15% or higher, no additional reciprocal tariff applies. A set of product categories are exempt from the 15% rate entirely and pay only MFN duties: aircraft and aircraft parts, certain chemicals, generic pharmaceuticals and their precursors, semiconductor equipment, certain agricultural products, natural resources, and critical raw materials.
Autos and auto parts, pharmaceuticals, and semiconductors are included within the 15% rate. Steel, aluminum, and copper remain at 50% — unchanged — with the joint statement noting that the parties intend to discuss possible tariff-rate quota arrangements if supply chain security can be established (i.e., protection against Chinese overcapacity flowing through European supply chains).
On the EU side, the bloc committed to eliminating all tariffs on U.S. industrial goods and providing preferential market access for a range of U.S. agricultural and seafood products. Rules of origin are to be negotiated to ensure the deal’s benefits flow to U.S. and EU producers rather than to third countries — a direct reference to concerns about Chinese goods being routed through Europe to take advantage of the lower rate.
Additional resources: White House Fact Sheet | Statement by President von der Leyen
As Jason noted at the time of the original post: beyond what the announcement contains, the exact contours of the agreement remain open to change. That caveat has proven accurate.
What Has Happened Since August 21
The U.S. side moved relatively quickly to implement the deal. On September 5, 2025, President Trump signed Executive Order 14346, authorizing the Commerce Department and USTR to implement the framework agreement and any future trade and security agreements. A Federal Register notice published September 25 formally amended the HTSUS, reducing Section 232 automobile and auto parts tariffs for EU-origin goods to a combined 15% rate retroactive to August 1, 2025, and establishing exemptions from the reciprocal tariff for aircraft, aircraft parts, generic pharmaceuticals, and other agreed categories effective September 1, 2025.
The EU side has been slower and more complicated. The European Commission submitted legislative proposals in August for the EU Parliament and Council to implement the EU’s tariff reduction commitments. The Council adopted its negotiating mandate in November 2025. However, in January 2026, the EU Parliament’s trade committee suspended its work on the implementing legislation in response to President Trump’s threats against EU and NATO members over the Greenland situation — a political dispute that briefly put the entire deal in jeopardy.
As of March 2026, the EU Parliament’s trade committee has voted to resume work on the two implementing proposals, moving the deal closer to formal ratification on the EU side. The agreement is not yet fully in force — it remains a framework, with implementation proceeding in stages on both sides. Importers should treat the current tariff structure as operative but monitor ongoing developments, particularly any changes tied to the EU legislative process or shifts in the broader U.S.-EU political relationship.
EU Trade Questions?
Do you have questions about how the U.S.-EU trade framework affects your imports? Great Lakes Customs Law has been advising importers for more than 15 years. Call us at (734) 855-4999, send a text message, or reach us on WhatsApp.