United States and European Union Reach Consensus on Updated Customs Duties for Crucial Products
In a significant move, the US has agreed to temporarily suspend tariffs on UK and EU goods in a large civil aircraft dispute. This decision, announced by Ursula von der Leyen, European Commission President, is expected to bring stability and predictability to the automotive and pharmaceutical sectors.
The automotive sector alone accounts for billions in trade value annually between the EU and US. Similarly, the EU's exports of cars and pharmaceuticals to the US have been significant contributors to the trade relationship.
Under the new agreement, a zero-for-zero tariff rate has been established for strategic products such as aircraft, aircraft parts, certain chemicals, and generic drugs. However, the existing 50% tariffs on EU steel, aluminium, and copper remain in place, with the EU and US agreeing to establish tariff rate quotas for these metals at historic export levels.
The US has set a new 15% tariff ceiling on the vast majority of EU exports, including cars and car parts, effective August 1, 2025. In return, the EU has committed to buy an additional $750 billion worth of US energy products over the next three years and invest $600 billion in various US sectors by 2029.
The deal, which creates certainty in uncertain times and delivers stability and predictability, comes as a relief to businesses on both sides of the Atlantic. It is intended to promote balanced trade and increase investment and energy trade between the two economies.
However, no specific details about the tariff rate for wine and spirits were disclosed. The deadline for the EU and US to avert a tariff war is July 9. The article, published in the section "our publication Daily" and archived, was reported by Yahoo Finance and can be shared on various platforms, including X, Facebook, LinkedIn, and printed. The comments section for the article is available for reader feedback.
Data for this article is sourced from the IndexBox Market Intelligence Platform.
The new agreement, with its zero-for-zero tariff rate on strategic products, is set to significantly influence the global trade of aircraft, aircraft parts, certain chemicals, and generic drugs between the US and EU. On the other hand, the persistent 50% tariffs on EU steel, aluminum, and copper, along with the pending decision on wine and spirits tariffs, highlight the complexities of global finance and politics shaping business and general-news narratives.
