Industry profits reinforced through questionnaire response, as orchestrated by the Commission.
The US-EU trade landscape has seen a significant shift, with the EU Commission reducing the threatened tariff rate on most of its exports to the US by half. The new tariff rate, set at 15%, takes effect as of midnight Washington time (6 am German time), a move that follows US President Donald Trump's announcement on Truth Social.
However, the start date of these tariffs has been a point of contention between the two parties. While a political agreement was reached by July 27, 2025, the EU Commission was still awaiting the US executive orders to formalize the agreed tariff rates, leading to uncertainty about the exact implementation timeline.
The new tariffs, reduced from an initially threatened 30%, apply to most European goods except steel and aluminum, which remain subject to a 50% US tariff. The 15% rate is more than triple the pre-Trump average tariff of 4.8%. This change is particularly impactful for the automotive sector, which faced a 25% US tariff previously. Although the reduction to 15% alleviates some pressure, it still represents a higher cost barrier, affecting pricing, supply chains, and market access for European car manufacturers in the US market.
In a bid to improve economic ties, the EU has pledged around $600 billion in investments, primarily in the form of energy and arms purchases and increased investment in the US market. This commitment, part of a broader framework, is expected to exceed $1.3 trillion in coming years, according to US administration statements. While the EU sees this as a commitment to deepen economic ties and market access, interpretations on both sides differ slightly, with the US emphasizing the scale of investment and trade gains, and the EU approaching it as a cooperative economic opening under negotiated terms.
The exact companies and amounts involved in the investment pledges have not been disclosed by the EU Commission. However, it has assured Trump that it will purchase $750 billion (around €650 billion) worth of energy from the USA by the end of his term.
Trump has justified the tariffs with allegations of trade deficits that he claims pose a national security risk to the US. His description of the investments as "at the disposal of the United States" and his reference to them as a "gift" have been met with contradiction from the EU Commission.
The US is currently negotiating separately with China and Mexico, and Trump has threatened or imposed punitive tariffs on countries that do business with Russia in the energy sector. The tariffs imposed on many EU imports are not without controversy, with 70 other countries also affected, each at different levels.
Despite the challenges, both parties remain committed to deepening their economic cooperation. The impact of these changes on the EU and US markets will unfold in the coming months and years, and it will be interesting to witness the evolution of this significant shift in the global trade landscape.
- The reduced tariff rate on most European exports to the US, now at 15%, is a part of the general-news discussion surrounding the changing US-EU trade landscape.
- The EU's investment pledge of around $600 billion in energy and arms purchases, along with increased investment in the US market, is a political move aimed at improving economic ties with the US, following the tariff disputes in politics.
