US–EU tariff agreement: Trump signs executive order making trade deal effective
During the night (European time), U.S. President Donald Trump signed an executive order that puts into effect the recently announced trade deal on tariffs with the European Union.
This is a key step that transforms the political agreement, made in coordination with European Commission President Ursula von der Leyen, into concrete trade measures.
15% tariff cap on European goods
The deal introduces a 15% cap on U.S. tariffs for most European goods, applicable starting August 7, 2025.
Although no specific exemptions have been granted yet, the European Commission has stated its intention to negotiate as many exemptions as possible.
We will continue to monitor developments closely in order to provide timely updates.
No immediate impact on maritime shipments
Maritime shipments will not be affected immediately. Current tariffs will remain in place until October 5, 2025, providing a transitional period for logistics and customs adjustments.
Summary of the EU–US Trade Agreement: key sectors impacted
The agreement, announced on July 27, 2025, aims to strengthen economic ties between the EU and the United States, directly impacting strategic and highly integrated sectors.
Automotive sector: major tariff reductions
One of the most significant outcomes is the reduction of tariffs on European cars and parts.
U.S. tariffs announced in April 2025, which could reach up to 25% (plus a 2.5% MFN tariff), will now be replaced by a single 15% cap.
This brings immediate relief for European automotive manufacturers, particularly those based in Germany and Italy, who export millions of vehicles and parts to the U.S. market.
Pharmaceutical sector: return to pre-2025 tariff levels
The pharmaceutical industry will also benefit. Tariffs on certain European generic drugs will revert to their pre-January 2025 levels.
This change increases competitiveness for EU-based pharmaceutical companies, which have been negatively impacted by high and unpredictable trade barriers in the U.S.
Steel industry: tariff quotas and reduced duties
In the steel sector, the agreement sets up tariff quotas based on historical export volumes for European steel, aluminum, and copper.
This move drastically reduces U.S. tariffs, which had previously climbed as high as 50%.
Both the EU and the U.S. commit to jointly defend their steel and metal industries against unfair global trade practices, with particular attention to overcapacity in third countries.
Market access for U.S. exports to the EU
The trade agreement allows targeted increases in U.S. exports to the European market, with improved access for:
- Agricultural goods (soybean oil, planting seeds, processed foods)
- Seafood (Alaska salmon, shrimp)
- Low-duty industrial products
These U.S. exports to the EU will be managed through regulated quotas and will not affect sensitive sectors such as beef and poultry, preserving core EU agricultural protections.
Technical, economic, and energy cooperation strengthened
The agreement enhances transatlantic cooperation in several key areas:
- Technical standards, especially in automotive and public health
- Economic security, including investment screening and export control policies
- Energy supply diversification
As part of the deal, the EU plans to import liquefied natural gas (LNG), oil, and critical technologies such as AI chips from the United States.
Total procurement commitments are valued at approximately €740 billion over the next three years.