Tariffs on European exports will be set at 15%
of ConsumerAffairsJuly 28, 2025
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The U.S. will reduce tariffs on EU exports from 30% to 15%, while the EU agrees not to impose retaliatory tariffs and pledges significant U.S. investmentsmirroring a recent deal with Japan.
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The agreement establishes mutual recognition of digital privacy protections and commits both sides to collaborate on electric vehicle infrastructure and renewable energy technologies.
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While hailed for promoting stability, labor unions and environmental groups express concern over job protections and enforcement; the deal still awaits ratification by Congress and the European Parliament.
The U.S. and European Union reached a trade agreement over the weekend that will likely reduce tensions and head off a trade war. Under the agreement, the U.S. will set tariffs on EU exports at 15% after initially imposing a 30% levy.
According to President Trump, the EU will not impose a tariff on U.S. exports and will make significant investments in the U.S. In that regard, the trade agreement is similar to one reached last week with Japan.
Trump said the 50% tariff on steel products would remain in place and there could be higher tariffs on pharmaceutical products in the future. European Commission President Ursula von der Leyen, who appeared with the president in Brussels to announce the deal, said it will bring stability. It will bring predictability. Thats very important for our businesses on both sides of the Atlantic.
In a first-of-its-kind move, the agreement introduces mutual recognition of digital privacy protections, allowing smoother transfers of data and digital services between the U.S. and EU. It also commits both sides to collaborate on electric vehicle infrastructure and renewable energy technologies.
Despite its broad support, the agreement has sparked concern among labor advocates and environmental watchdogs.
The AFL-CIO warned that lower tariffs could expose some U.S. manufacturing sectors to increased competition without guaranteed labor protections.
There are also doubters in Europe.French Prime Minister Francois Bayrou said the agreement creates a dark day for Europe, complaining the EUhad caved in to the U.S. in a way that will hurt EU members.
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