New US EU Trade Deal!

On July 27, 2025, a trade deal between the United States (U.S.) and the European Union (EU) was announced. The next day, the White House issued a Fact Sheet: The United States and European Union Reach Massive Trade Deal. Highlights from the deal include a lower 15% U.S. tariff rate on EU products, including autos and auto parts, pharmaceuticals, and semiconductors. Further details are expected to be released shortly.

The deal marks a generational modernization of the transatlantic alliance and will provide Americans with unprecedented levels of market access to the European Union.

*As of 07/29/2025, Section 232 tariffs on copper have not been announced.

Additional Key terms of the Agreement will include:

• Massive EU Investment in the United States: The EU will invest $600 billion in the United States over the course of President Trump’s term. This new investment is in addition to the over $100 billion EU companies already invest in the United States every year.
• Unleashing American Energy: The EU will double down on America as the Energy Superpower by purchasing $750 billion of U.S. energy exports through 2028. This will strengthen the United States’ energy dominance, reduce European reliance on adversarial sources, and narrow our trade deficit with the EU.
• Tariff Barriers:  The European Union will work with the United States to eliminate tariffs in various sectors and will provide meaningful quotas for other products, which when combined will create commercially meaningful market access opportunities for a significant amount of U.S. goods exports to the European Union, supporting high-quality American jobs. 
• Non-Tariff Barriers for U.S. Industrial Exports: The European Union will work to address a range of U.S. concerns related to various EU requirements that are burdensome to U.S. exporters, particularly small and medium-sized businesses, including through efforts to eliminate the red tape that U.S. exporters face when doing business in the European Union.
• Non-Tariff Barriers for U.S. Agriculture Exports: The United States and the European Union intend to work together to address non-tariff barriers affecting trade in food and agricultural products, including streamlining requirements for sanitary certificates for U.S. pork and dairy products.
• No Free Riders: The United States and the European Union will establish strong rules of origin to ensure that the benefits of this agreement flow directly to the United States and the European Union, not to third countries. 
• Barriers for Digital Trade: The United States and the European Union intend to address unjustified digital trade barriers. In that respect, the European Union confirms that it will not adopt or maintain network usage fees. Furthermore, the United States and the European Union will maintain zero customs duties on electronic transmissions.
• Economic Security: The United States and the European Union agree to strengthen economic security alignment to enhance supply chain resilience and innovation. The two sides will take complementary actions to address non-market policies of third parties, as well as cooperating on inbound and outbound investment reviews, export controls, and duty evasion.
• Commercial Deals: The United States and European Union recognize a series of major commercial agreements across key sectors—including energy and semiconductors—that will further expand U.S. exports to the European market.
• Military Equipment: The European Union agreed to purchase significant amounts of U.S. military equipment.

Next Steps

The White House will formalize the new tariffs and any new rules associated with the trade deal. It is uncertain if these changes will take effect on August 1, 2025, or at a later date.

Have Questions? Contact your local NNR Representative.

We will continue to monitor this tariff action and provide updates as they become available.