New trade deal between the US and EU: trade war averted?

Previously, we reported on President Trump's announcement of a series of protectionist measures aimed at reducing the US trade deficit. These measures included a 20% import tariff on EU goods. The new agreement is part of the broader "Liberation Day" revision of US trade policy, launched on April 2, which introduced a general minimum tariff of 10% and higher duties for countries with significant trade surpluses or unilateral trade practices.

The July 27, 2025 Trade Agreement

After months of negotiations, the US and EU have now reached an accord. Instead of the previously proposed tariffs of up to 30% on goods such as automobiles, pharmaceuticals, and electronics, a mutual tariff of 15% will now apply to the majority of traded goods.

However, exceptions apply for aircraft and related parts, certain chemicals, semiconductor equipment, select agricultural products, as well as all natural resources and critical raw materials. Steel and aluminum remain subject to a 50% import tariff.

• The new trade deal, dubbed “the biggest deal ever” by Trump, includes broad EU commitments in areas such as energy, foreign investment, and defense procurement.

• European Commission President Ursula von der Leyen stated that the 15% tariff would apply to “the vast majority of EU exports” and described it as “a clear ceiling” that provides certainty for European citizens and businesses.

• She also confirmed that ‘zero-for-zero’ exemptions will be expanded in future negotiations.

EU commits to American investments

In addition to tariff agreements, the deal includes substantial investment and purchase obligations. The EU has committed to:

• $750 billion in imports of US energy products (including LNG, oil, and nuclear fuels)

• $600 billion in investments in US industry, technology, and infrastructure

Impact on Belgian businesses

The “reciprocal” tariffs introduced by President Trump have a significant impact on trade relations between the US and EU, disrupting global trade flows and creating uncertainty for companies and employees alike. For European companies, even those with only indirect exposure to the US, it is crucial to reassess international strategies.

The new tariffs result in higher costs, increased administrative burdens, and growing uncertainty around future investments. Many businesses are reconfiguring their supply chains or actively seeking new export markets, often incurring substantial restructuring costs. A thorough analysis of trade flows and exposure to import duties is now more important than ever.

The fact that steel and aluminum remain outside the scope of the agreement, continuing to face a 50% tariff, indicates that the EU made strategic concessions to avoid a full-blown trade war. Legal assessments and formal procedures are expected in the coming weeks.

Questions about this trade agreement and how these import tariffs and trade restrictions could affect your business? Don’t hesitate to reach out via tax@vdl.be or use the contact form below.