Trade negotiations between the European Union and the United States are progressing with the proposition of fresh tariff policies.
The United States and the European Union are reportedly on the verge of finalizing a trade agreement, with a significant development looming in the form of a proposed 15% tariff on most EU imports to the U.S. as of late July 2025 [1][5].
This potential agreement would see the broad application of the 15% tariff across imports, with some sector-specific nuances. For instance, the automotive and related sectors are included in the EU's push for coverage under the 15% duties [1]. Moreover, steel and aluminum imports above specified quotas would face higher tariffs of up to 50%, reflecting prior U.S. steel tariff policies [1].
The industries directly affected by these tariffs and proposed waivers include automotive, aircraft, medical devices, IT equipment, and industrial machinery [3]. The EU is also preparing counter-retaliation tariffs on a range of U.S. exports valued at around €95 billion, signalling potential escalation if no deal is reached [3].
The U.S. Commerce Department has instituted rules for requesting derivative aluminum and steel products to be subject to tariffs, with a process for inclusion requests and public comment windows, aiming to fine-tune tariff coverage on steel/aluminum-related goods [3].
The trade imbalance highlights the significance of the automotive sector in ongoing negotiations. Interestingly, in 2024, the U.S. imported more from Japan than from the EU in the automotive sector [2].
It's important to note that the details of the agreement remain unverified by Reuters [2], and neither the White House nor the European Union have commented on the matter as of yet [2].
The situation remains dynamic given ongoing negotiation efforts and scheduled implementation deadlines. Canada has already retaliated against U.S. steel tariffs by imposing a 25% tariff on U.S. automobiles, highlighting the broader international pushback against U.S. tariff measures [4].
References:
[1] Reuters. (2025, July 28). U.S. and EU close to agreement on 15% tariff on most EU imports. Retrieved from https://www.reuters.com/business/us-eu-close-agreement-15-tariff-most-eu-imports-2025-07-28/
[2] Reuters. (2025, July 29). Factbox: What we know about the U.S.-EU trade talks and potential tariffs. Retrieved from https://www.reuters.com/business/us-eu-trade-talks-tariffs-factbox-2025-07-29/
[3] Reuters. (2025, July 30). EU readies counter-retaliation tariffs on U.S. goods worth €95 billion. Retrieved from https://www.reuters.com/business/eu-readies-counter-retaliation-tariffs-us-goods-worth-e95-billion-2025-07-30/
[4] Reuters. (2025, July 31). Canada imposes 25% tariff on U.S. automobiles in response to steel tariffs. Retrieved from https://www.reuters.com/business/canada-imposes-25-tariff-us-automobiles-response-steel-tariffs-2025-07-31/
[5] CNBC. (2025, July 31). U.S. and EU are close to a trade agreement. Here's what it could mean for you. Retrieved from https://www.cnbc.com/2025/07/31/us-and-eu-are-close-to-a-trade-agreement-heres-what-it-could-mean-for-you.html
- The proposed 15% tariff on most EU imports to the U.S. is a significant issue in global finance and business, as it could impact a wide range of sectors including automotive, aircraft, medical devices, IT equipment, and industrial machinery.
- The ongoing trade negotiations between the United States and the European Union, with the potential implementation of tariffs, has multi-faceted consequences not only for business and finance, but also for politics and general-news, as it could lead to retaliatory tariffs worth €95 billion from the EU and trade wars with other countries like Canada.
