Brussels and Washington outline a broad 15% cap on most EU exports to the US, with immediate automotive retroactivity and a transitional MFN regime for select sectors.
The transatlantic accord between Brussels and Washington has been formalised in a joint statement setting a broad 15% all‑inclusive tariff ceiling for the majority of EU exports to the United States. Confirmed following the July political agreement between European Commission President Ursula von der Leyen and US President Donald Trump, the statement specifies that strategic sectors — including cars, pharmaceuticals, semiconductors and lumber — fall under the 15% cap. For vehicles and parts, the joint statement makes clear that Washington will retroactively apply the 15% ceiling to EU-origin cars and components from 1 August, a move intended to provide immediate clarity for the automotive sector. The declaration is political rather than legally binding; the measures require domestic implementation steps to achieve full legal effect on both sides.
Trade Commissioner Maroš Šefčovič, who led the talks with US counterparts, described the outcome as a “serious, strategic deal,” saying a wide range of sectors stand to benefit and warning that a return to high tariffs would harm jobs and growth on both sides of the Atlantic. European Commission President von der Leyen said the agreement restores clarity and coherence to transatlantic trade and stressed that negotiations will continue to seek additional tariff reductions and areas of cooperation.
The joint statement also sets a special regime applying from 1 September for several categories that will be subject only to Most Favoured Nation (MFN) tariffs. This transitional MFN treatment explicitly includes aircraft and aircraft parts, cork, generic pharmaceuticals and chemical precursors, and both sides signalled willingness to consider adding further product groups over time.
On steel and aluminium, the declaration aims to protect markets from global overcapacity while maintaining secure supply chains through tariff-rate quota solutions — measures framed as important for supply chains, including those serving the automotive industry. The statement cautions that the joint declaration is a political framework and not yet a binding treaty; analysts and media note that future unilateral actions remain possible until measures are enshrined in law.
The White House’s published framework reiterates the 15% ceiling across most EU exports to the United States and specifies that reductions on automobile tariffs depend on EU actions to legislate reciprocal cuts for US goods. It does not commit the US to fully eliminate tariffs on European industrial goods; rather, it describes conditionality linking automotive relief to EU legislative steps on reciprocal reductions. Both sides also committed to look into including additional product groups under favourable treatment and to address concerns around trade distortions such as global overcapacity in certain metals.
The joint declaration is presented as a stabilising step for transatlantic trade, including for automotive value chains, by capping a key cost component for European carmakers and suppliers and by setting frameworks to protect critical supply lines for metals and semiconductor inputs. At the same time, the Commission has emphasised that this is the start of a process: domestic procedures and further negotiations will determine how and when the political commitments become legally binding and whether tariff relief can be broadened or adjusted. The overall tone from government and industry is guarded optimism — the deal provides immediate clarity on tariffs for many EU exporters while leaving room for continued dialogue and domestic implementation on both sides.
Source: Noah Wire Services
