Transatlantic Trade Monitor: Facts You Need Now | USA Tariffs Update: Agreement Reached with EU – New Country-specific Tariffs Adopted

By Dr. Eckart Gottschalk, Dr. Kai Westerwelle, and Dr. Nicolas Wiegand, CMS

At a meeting between US President Donald Trump and EU Commission President Ursula von der Leyen on 27 July 2025, the US and the EU agreed on the introduction of a uniform, top flat rate for US tariffs of 15 % on goods from the EU.

• The 15 % cap applies to almost all EU exports that are currently subject to reciprocal tariffs. However, if a most-favoured nation (MFN) tariff rate already exceeds 15 %, this rate will continue to apply.
• The 15 % cap also applies to motor vehicles and motor vehicle parts, which are currently still subject to a tariff rate of up to 25 % with an additional MFN tariff rate of 2.5 %.
• The 15 % cap also applies to all potential future tariffs on medicinal products and semiconductors, including those based on Section 232 US Trade Expansion Act of 1962. Until the US decides whether to impose additional tariffs on these products under Section 232, they will continue to be subject only to US MFN tariffs.

In addition, the current tariffs on certain strategic products such as aircraft and aircraft parts, certain chemicals, certain generic products and natural resources will no longer apply. The US and the EU want to negotiate the inclusion of further products on this list in the future.

The EU hopes that the agreement will create clarity and planning security for EU companies. The US hopes to gain better access to the EU market.

The current tariffs of 50 % on steel and aluminium will remain in place. Expanding on this, the US government announced on 30 July 2025 that it would be levying a 50 % tariff on imports of semi-finished copper products (such as copper wire, rods, sheets and pipes) and products containing copper (such as pipe fittings, cables, connectors and electrical components) from 1 August 2025.

On 31 July 2025, the US government issued the executive order “Further Modifying the Reciprocal Tariff Rates”. The new tariffs will come into effect on 7 August 2025 at 00:01 EDT. However, there is an exemption for goods that are already in transit by sea: No additional tariffs will apply to goods

• that were loaded at the port of loading before 00:01 EDT on 7 August 2025 and are on their final transport route
• and that were declared for consumption or withdrawn from storage for consumption before 00:01 EDT on 5 October 2025.

The newly introduced tariff rates are country-specific (the executive order contains a table listing them) and apply in addition to the existing duty rates for goods imported into the US.

Also on 31 July 2025, the US government issued the separate executive order on duties on goods from Canada entitled “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border”, which increased the base rate of duty from 25 % to 35 % effective 1 August 2025.

What do the changes in US tariff policy mean for companies?

• The agreement between the US and the EU is not legally binding in its current form and therefore has no direct impact. It gives an indication as to how tariff policy measures may develop in the near future. Companies should accordingly keep an eye on the subsequent developments.

With regard to the country-specific tariffs (especially outside the EU), companies should review their location structure and corresponding supply chains to minimise the increased costs resulting from the raised tariffs.

Should you require assistance or further information, please do not hesitate to contact one of our key contacts listed below. We will be happy to support you together with our US partners.

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