Brussels (Brussels Morning Newspaper) – An EU official stated on Tuesday that the 15% tariff on European Union goods entering America is comprehensive, covering the Most Favoured Nation Rate, unlike agreements some other countries have with the U.S..
The official stated that the 15% rate applies to all goods, excluding steel and aluminium. Tariffs on pharmaceuticals and semiconductors are currently zero. However, if they increase due to the U.S. 232 investigations, the maximum tariff will still not exceed 15%. This 15% limit also extends to cars and car parts. There are no quotas or restrictions on them.
How will the new US tariff impact EU exporters?
Most exports from the European Union to the United States face a current U.S. tariff rate of 15%. Tariff rates for most exports (including cars, car parts, pharmaceuticals, and semiconductors) now sit at either 15% or 0%, and this is as part of a major deal that was reached between the U.S. and the EU in July 2025.
The newly proposed 15% tariff is all-in; it includes former tariff rates, and serves as the maximum tariff rates for exports from EU member states into the United States. Tariffs that were previously halfway or sometimes slightly higher than demonstrated the original point of this “15tariff” from the U.S. The current tariffs for exporting steel, aluminum, and copper from the EU to the U.S., after being originally set at 50%, still remain at 50% each and have their own distinct tariff rate quotas.
At the same time, the EU also agreed to spend $750 billion on U.S. energy products, as well as $600 billion into the U.S. economy by 2029. Essentially, the agreement supersedes the concern of raised or higher tariffs, in order to build a more predictable trading relationship between the two economies.
Why are EU leaders critical of the trade deal?
The agreement offers increased market access and stability in trade flows, but in addition to some element of political gamesmanship, some leaders in Europe are concerned by the potential damage to EU competitiveness and inflation.
In commenting on the agreement, French Prime Minister François Bayrou described today as “a dark day” for Europe because, as he saw it, this was one more capitulation to U.S. demands, and the EU just submitted to the demands and rejection of the U.S. and was profound displeased with the outcome.
Germany’s Chancellor, Friedrich Merz, expressed initial goodwill of preventing escalation but later also reflected that the deal will represent “significant damage” to the German and wider European economy and expects the anticipated higher inflation levels could be impacted, in addition to the tariffs impacting the economy’s deeper aspects.
