
TEMPO.CO, Jakarta - The United States and the European Union have reached an agreement on trade tariffs. This decision ends months of deadlock and prevents a major trade war. U.S. President Donald Trump considers the tariff agreement with the EU as a means to balance the trade balance between the two economic powers.
As reported by Al Jazeera, the agreement was reached a few days before the deadline set by Trump on August 1, 2025. Here are the key points of the import tariff agreement between the U.S. and the EU:
15 Percent Tariff for the European Union
The agreement states that the U.S. will impose a 15 percent import tariff on cars, pharmaceuticals, and semiconductors from Europe. Some of the products subject to this tariff are essential for the European economy. Meanwhile, products from the U.S. entering the EU market will not be subject to tariffs.
50 Percent Tariff for Unreduced Steel Products
The U.S. will impose a 50 percent import tariff on steel and aluminum from the EU. Meanwhile, the aerospace tariff will remain at zero for the time being.
European Union Buys U.S. Energy Products
The EU will purchase an additional US$750 billion worth of energy products from the U.S. In addition, the EU has agreed to invest US$600 billion in the U.S. and buy military equipment worth hundreds of billions of dollars. European Commission President Ursula von der Leyen confirmed that the EU will endeavor to purchase an additional US$250 billion worth of U.S. energy products each year from now until 2027.
Response from European Leaders
German Chancellor Friedrich Merz welcomed the agreement. He said the deal prevents an unnecessary escalation of transatlantic trade relations. Friedrich Merz said that a trade war would have a significant impact on Germany's export-oriented economy. He also mentioned that the German automotive industry will experience a reduction in U.S. tariffs from 27.5 to 15 percent.
In contrast, French Prime Minister Francois Bayrou referred to the agreement as a dark day for Europe. He said the bloc had surrendered to the U.S. president by accepting an imbalanced agreement. He also stated that the agreement protects U.S. imports from direct retaliation by Europe.
"It is a dark day when an alliance of free peoples, united to assert their values and defend their interests, resigns itself to submission," Bayrou wrote in X.
Wolfgang Niedermark, a member of the trade council of the German Federation of Industries, described the agreement as an inadequate compromise. According to him, the EU accepted burdensome tariffs. He said that the 15 percent tariff would significantly harm Germany's export-oriented industries.
French Minister for European Affairs Benjamin Haddad said the trade agreement will bring temporary stability to the economies threatened by the escalation of U.S. tariffs. However, he mentioned that the deal is not balanced. Similarly, Dutch Minister for Foreign Trade Hanneke Boerma said the agreement is not ideal, so they called on the Commission to continue negotiating with Washington.
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