Trump, European Union comes to trade contracts, 15% tariff
President Donald Trump announced that the United States had reached a trade agreement with the European Union a few days before its August 1 deadline.
- Trump signed a trade agreement with the European Union over the weekend, setting a 15% tariff on most European goods.
- The deal avoided the 30% tariff that Trump announced in early July.
- Previous tariffs on EU goods averaged in the low single digits before Trump, media reports said.
President Donald Trump signed a trade agreement with the European Union during his trip to Scotland on the weekend of July 27th.
Trump previously threatened a 30% tariff on European goods in July, but he said it would take effect on August 1st. While Trump with the European Commission president included a $600 billion tariff in EU investment in the US, including a 15% tariff on most goods from Europe, steel and aluminum continue to face higher fees.
Europeans were pushing for a 10% tariff rate, which would have been higher than before Trump took office this year.
The deal is that Trump’s second extension on the “liberation date” tariffs in April is approaching another deadline. He has also signed trade contracts with several countries since last delayed the “mutual tariff” in July.
But how does the tariff rate for this transaction compare to trade between the US and the EU before unaddressed tariffs, which was a central theme in Trump’s second presidency?
What were the tariffs on EU goods before Trump?
Before Trump took office, according to the New York Times, tariffs on goods that Trump came to the US from Europe were significantly lower, with an average lower than the average by magnitude lower, according to the New York Times. CNN reported that the average US fee for European imports was 1.2% over the presidency.
Trump has long been critical of the EU due to the trade deficit, saying it was “formed to ruin the United States.”
What is customs duty?
Tariffs are taxes on imports paid by companies that purchase goods from overseas, but usually the costs are handed over to the consumer. Despite jumps from previous tariff rates, the market responded aggressively. U.S. stock futures were high after the agreement was announced.
The deadline imposed by Trump on August 1 is approaching many countries
Trump was considered the “liberation day” on April 2nd, and announced extensive tariffs on goods from most countries. But shortly afterwards, he paused most of the 90-day rates above 10%.
That first 90 days expired on July 9th, but he once again extended the deadline and began issuing letters announcing new tariff rates on exports from other countries.
In his second delay, he said the new deadline is August 1st and vowed that the date will not change.
The agreement was announced with the EU, a group of 27 countries that make up one of the world’s largest economies, similar to other deals announced in recent weeks with other major trading partners such as Japan.
Contributions: Savannah Kucher, Bad Janssen, Medora Lee, USA Today
Kinsey Crowley is a Trump Connect reporter for the USA Today Network. Contact her at kcrowley@gannett.com. Follow her on X and Tiktok @kinseycrowley or Bluesky @kinseycrowley.bsky.social.
