EU–US trade deal update
After months of political turbulence, a new EU–US trade framework is moving towards implementation, but it remains conditional and contested.
In July 2025, US President Donald Trump and European Commission President Ursula von der Leyen announced a framework trade agreement at Trump's Turnberry golf resort in Scotland. The deal was a response to earlier threats to impose tariffs of up to 30% on European goods.
The core bargain:
- The US caps tariffs on EU exports at 15% across most categories, replacing the threat of much higher duties
- The EU eliminates tariffs on US industrial goods and opens preferential access for US agricultural and seafood products
- Exceptions apply: steel, aluminium, and their derivative products face combined tariffs of up to 50% above certain quotas
- Aircraft, generic pharmaceuticals, and unavailable natural resources attract only MFN tariffs, with no additional reciprocal duty
The deal was never a traditional free trade agreement and its ratification has proved anything but straightforward.
After three rounds of negotiations, on 20 May 2026, EU member state ambassadors cleared the implementing legislation on 27 May. The European Parliament's trade committee is now expected to vote, with a full Parliament vote in mid-June and final implementation to follow.
The EU's implementation includes three protective mechanisms that were not in the original framework:
Sunrise clause: EU tariff preferences only take effect once the US has demonstrably fulfilled its commitments
Suspension clause: EU can suspend the deal if the US imposes new tariffs or fails to comply with the 15% cap by 31 December 2026
Sunset clause: The agreement expires on 31 December 2029 unless the EU Parliament votes to extend it
Where things stand right now
US Trade Representative Jamieson Greer confirmed on 3 June 2026 that "both sides are dedicated to adhering to the trade agreement". The statement came as Washington imposed new forced-labour tariffs of up to 12% on imports from 60 countries, including a 10% charge on EU goods. a development the EU did not view favourably.
Trump has warned that if the EU fails to implement its commitments by 4 July 2026, the US will revert to higher tariff rates, including a threat to raise car tariffs from 15% to 25%.
The EU's own deadline for full US compliance with the 15% cap is 31 December 2026.
What this means for US importers
The 15% tariff on most EU goods is the new baseline and it is likely to hold through 2026.
- Most industrial goods from the EU face a 15% tariff, effective from August or September 2025 depending on category
- Cars and automotive parts from the EU are at 15% as long as the deal holds
- Pharmaceuticals, semiconductors, aircraft, and natural resources face MFN tariffs only
- Steel, aluminium and derivatives tariffs above quota thresholds can still reach 50%
The 4 July deadline is the most immediate risk. If the EU Parliament vote does not proceed as expected in mid-June, or if the US judges EU implementation insufficient, tariff rates could escalate with limited notice. Build contingency into H2 sourcing plans.
What this means for EU and UK exporters
The 15% tariff cap is an improvement over the 30% that was threatened, but it represents a real cost increase for businesses that previously traded under MFN rates of 2–5% on many product categories.
For UK exporters, the picture is more nuanced. The Turnberry Agreement is an EU–US deal; the UK is not party to it. UK goods entering the US continue to face US tariff rates under separate terms, currently the 10% general baseline rate following the Supreme Court ruling on IEEPA authority.
- Check your HS code and current US tariff rate
- Clarify your rules of origin position
- Monitor the 4 July and 31 December deadlines
- Brief your US customers now
Logicall's customs and freight teams provide hands-on support to US importers, EU and UK exporters, from HS code classification and duty calculation through to full customs clearance on both sides of the Atlantic.