Hello Customers, Colleagues, and Friends,
The Presidential Administration announced a long awaited, new trade agreement with the European Union (EU) on Sunday, July 27. Below is a summary of the key elements relevant to U.S. importers and exporters.
- EU-origin goods entering the U.S. (including autos, auto parts, semiconductors, and pharmaceuticals) will now face a 15% tariff rate.
- Steel, aluminum, and copper from the EU will remain subject to the existing 50% tariff structure—unchanged from current policy.
- In return, the EU has eliminated most tariffs on U.S.-origin goods, granting zero-tariff access to a wide range of U.S. exports.
Other Notable Provisions
Tariff Reductions & Quotas: The EU has agreed to phase out tariffs in multiple sectors and open up new quotas—providing increased market access for U.S. goods, especially in industrial sectors.
Non-Tariff Barriers (NTBs) – Industrial Goods: The EU has committed to reducing regulatory red tape and simplifying requirements that have been challenging for U.S. exporters, particularly small and medium-sized businesses.
Non-Tariff Barriers – Agriculture: The U.S. and EU will work together to streamline sanitary certificate requirements and other technical barriers for food and agricultural products—specifically targeting U.S. pork and dairy exports.
Rules of Origin Enforcement: Both sides will implement strict rules of origin to ensure that trade benefits only apply to goods genuinely originating in the U.S. or EU—not from third countries trying to circumvent duties.
What this means for you
- Solidification of the EU tariff rate that has been unknown for many months
- Decreased costs to export to EU for US Exporters
- Rules of origin will be more strictly enforced—ensure goods qualify before claiming preferential treatment.
Further updates expected. We will continue to monitor developments and provide timely updates as additional information becomes available. Please reach out to K&H if you have any questions regarding the recent tariff changes.
Sincerely, Your friends at Krenz and Hannan International