BDI President: Implement US Trade Deal - EU and U.S. strike 15% tariff deal—but will it hold under scrutiny?
A new tariff deal between the EU and the U.S. has been struck, capping most European imports at 15%. The agreement, negotiated by European Commission President Ursula von der Leyen and former U.S. President Donald Trump, replaces an earlier threat of a 30% increase. However, approval from the European Parliament remains pending, and some industry leaders are urging caution.
The original plan, announced by the Trump administration, involved a 30% tariff hike on EU goods starting August 1, 2025. This was set to apply if trade talks failed. Instead, both sides settled on a unified 15% rate covering automobiles, semiconductors, and pharmaceuticals. The deal aims to provide a predictable ceiling for most imports, though some existing tariffs—ranging from 30% to 40% on cars, steel, and aluminium—remain unchanged.
Bernd Lange, chair of the European Parliament's Trade Committee, has called for a pause in implementing the agreement. He argues that clarity and legal certainty are needed before moving forward. His proposal contrasts with the Federation of German Industries (BDI), which insists Europe should approve the deal as planned. BDI president Peter Leibinger warns that delaying the agreement would only add to economic uncertainty.
Leibinger also stresses the importance of further negotiations to reduce the higher tariffs still in place. He notes that the U.S. continues to view tariffs as a key tool for boosting its industrial sector. Despite this, the BDI maintains that standing firm and finalising the current deal is the best path forward.
The tariff agreement now awaits approval from the European Parliament. If passed, it will set a 15% cap on most EU goods entering the U.S. market. Meanwhile, unresolved tariffs on key industries like cars, steel, and aluminium leave room for ongoing discussions between Brussels and Washington.
