Trump tariffs: EU strikes a deal
July 28, 2025 at 12:21 PM ,
Der AUDITOR
15% baseline tariff
On Sunday, the EU struck a deal with the US avoiding the 30% baseline tariff Trump had threatened. Instead, a baseline tariff of 15% will prevail for most US imports from the EU. Speaking to reporters on Sunday EU Commission President Ursula von der Leyen also stated that zero tariffs will apply in some sectors comprising “all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials.”
Although the deal brings clarity after months of turmoil, Trump clearly is the winner. Retaliatory tariffs for a whole range of agricultural products will not come into effect. Yet, a 50% tariff for steel is still in place and the 15% baseline tariff ranges above the tariffs in place before Trump resumed office in January. On top of this, Brussels will agree to buy USD 750 billion (EUR 642 billion) worth of oil, gas, nuclear fuel and semi-conductors over three years and will invest USD 600 billion (EUR 514 billion) in the US, which includes purchases of military equipment.
Mixed response in Germany
First responses from trade representatives within the EU are disillusioned. The Federation of German Wholesale, Foreign Trade and Services (BGA), for instance, highlights that the deal is a painful compromise as every single tariff percent is a substantial threat to many traders. While German Chancellor Friedrich Merz is relieved that a 27.5% tariff for German carmakers is no longer in place, the BGA calls for the government to finally start setting the right conditions non-industrial small and medium-sized businesses.
EU agri-food trade relies on US
At present, EU exports to the US clearly exceed the import value. According to the European Commission’s recently published "Monitoring of EU Agri-Food Trade" the US is a very important trading partner. In 2024 the US was the second most important export destination for EU agricultural exports after the UK accounting for 13% of the EU’s total exports. The export value rose from EUR 27 billion (USD 32 billion) in 2023 to EUR 30 billion (USD 35 billion) in 2024. In the fist four months of 2025, EU exports to the US also climbed by 7% to EUR 10 billion million (USD 12 billion) as compared with January-April 2024. Main drivers were the rise in value of cocoa-based products, along with wine and spirits. In April, however, exports to the US started to decline.
In terms of imports the US presently ranks third with a share of 7% after Brazil and the UK. EU imports from the US climbed from EUR 11.6 billion (USD 13.5 billion) in 2023 to EUR 11.9 billion (USD 13.9 billion) in 2024. In the first fourth months of 2025 imports from the US have risen by 17% to EUR 4.9 billion (USD 5.7 billion) as compared with the same period last year. Issue is a surge in maize imports, whereas soya imports have declined. Monthly imports from the US also declined in April.
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