EU and USA reach agreement on customs dispute

EU Commission President Ursula von der Leyen and US President Donald Trump have now announced an agreement in the months-long customs conflict. A further escalation of the conflict thus appears to have been averted for the time being.

Overview

The trade conflict between the EU and the US has been escalating since spring 2025. Most recently, the USA threatened to impose punitive tariffs of 30 per cent on European products from 1 August 2025.
Instead of these threatened punitive tariffs, a uniform tariff rate of 15 per cent is to apply to the majority of European goods in future. This basic tariff rate applies to most sectors and includes in particular automobiles, semiconductors and pharmaceuticals. 

The two sides also agreed on "zero-for-zero tariffs" for a number of strategically relevant products. The following products will therefore be duty-free in future:

• Aircraft and aircraft parts
• Certain chemicals
• Certain generics
• Semiconductor equipment
• Certain agricultural products
• Natural resources and critical raw materials

According to EU Commission President Ursula von der Leyen, work is underway to add further products to this list.

No comprehensive agreement has yet been reached on steel and aluminium. According to President Trump, the tariff on such imports from the EU will remain at 50 per cent. In this context, however, von der Leyen spoke of capping existing punitive tariffs and replacing them with a quota system.

Further concessions from the EU

However, the agreement also includes far-reaching economic concessions on the part of the EU. 

For example, the EU has committed to importing US energy products, including liquefied natural gas (LNG), oil and nuclear fuel, to the value of 750 billion US dollars by the end of President Trump's term of office. This is intended to replace Russian oil and natural gas, which would contribute to the diversification of supply sources and energy security in Europe.

In addition, European companies are to invest an additional USD 600 billion in the USA. According to President Trump, the purchase of US military equipment is also part of the agreement. 
Effects of the agreement

Waiving the announced 30 per cent punitive tariffs initially means relief and certainty for many European companies. Nevertheless, the new basic tariff rate of 15 per cent represents a considerable additional burden. 
The European automotive industry in particular can nevertheless breathe a sigh of relief. The agreement represents a significant improvement for them. Imports of cars were recently subject to customs duties totalling 27.5 per cent.

Conclusion

The agreement is a fragile compromise that was bought with considerable concessions, particularly on the European side. Instead of focussing on confrontation, the EU has chosen the path of de-escalation and thus placed planning security above strategic staying power. Only the coming months will show whether the agreement actually represents a sustainable solution.