Informed clearly

The EU and US agreed to 15% tariffs on most goods, avoiding 30% duties. Germany's export economy faces significant impact while the deal preserves key sectors. Further negotiations are planned. eu-us-15-percent-tariff-deal

EU-US Strike Tariff Agreement

European Commission President Ursula von der Leyen and US President Donald Trump have negotiated a trade deal establishing 15% tariffs on most EU exports to the US. This agreement prevents the implementation of threatened 30% tariffs that were scheduled to take effect August 1.

Key Agreement Terms

The compromise sets single tariffs at 15% for automobiles, pharmaceuticals, and industrial goods. Certain sectors including aircraft manufacturing and specific chemicals will revert to pre-Trump tariff levels. The EU committed to purchasing €700 billion in US energy products over three years and improving market access for American agricultural goods.

European Reactions

German Chancellor Friedrich Merz warned the deal would cause "significant damage" to Germany's export-dependent economy, particularly impacting the automotive sector. French President Emmanuel Macron criticized the EU's negotiating position, stating "Europe does not see itself enough as a power yet." Italian Premier Giorgia Meloni welcomed the agreement as preferable to trade escalation.

Economic Implications

Germany remains the largest EU exporter to the US with €161.2 billion in annual goods exports. Ireland faces disproportionate impact with over 25% of exports destined for American markets. Less exposed economies like Portugal (5% US-bound exports) anticipate manageable consequences. The agreement is not legally binding, with further negotiations planned.