Iran–EU Trade Falls by 18% in Early 2025
27.07.2025Agreement Reached in EU–US Customs Dispute
A last-minute deal, introducing a 15% tariff focused on the energy and defense sectors, has temporarily defused rising tensions between the European Union and the United States.
In an unexpected move, U.S. President Donald Trump and European Commission President Ursula von der Leyen reached a trade agreement on Sunday at Trump’s residence in Scotland, avoiding a full-scale tariff war. Under the deal, a flat 15% tariff will be imposed on most EU exports to the U.S.—significantly lower than the 30% tariff previously threatened by Trump.
The United States will apply the uniform 15% tariff to the majority of imports from the EU, including automobiles. As a result, the European automotive industry will benefit from a notable reduction compared to the 27.5% tariffs imposed by the U.S. since April. However, higher duties will remain in place for certain products: the punitive global tariffs of 50% on steel and aluminum will continue. Pharmaceuticals are exempt from the 15% tariff.
In return, the European Union has committed to importing $750 billion worth of energy from the U.S. and investing $600 billion in the American economy. Although efforts to lift the 50% U.S. tariff on steel were unsuccessful, the agreement provides stability for key sectors such as pharmaceuticals, chemicals, and semiconductors. Von der Leyen described the deal as “the best possible outcome.”
Source: Euronews, Handelsblatt
