What does the trade deal mean for businesses?

On July 27, 2025, the US and the European Union announced an agreement in their customs trade dispute. To this end, a comprehensive trade agreement is to be concluded with the following key points: 

• A flat tariff of 15 percent applies to imports of EU goods into the US. This tariff rate also applies to the automotive industry, which is currently subject to tariffs of 27.5 percent. 
• A zero percent reciprocal tariff rate is to be introduced for strategic products. These include certain aviation components, chemicals, generic drugs, semiconductor equipment, agricultural products, and some critical raw materials. Semiconductors and pharmaceutical products, on the other hand, will remain subject to the 15 percent tariff. 
• The tariff for imports of steel and aluminum from the EU to the US will remain at 50 percent for the time being. According to a statement by EU Commission President von der Leyen, there is the prospect of a reduction and the introduction of a quota system. 
• The EU will not impose punitive tariffs on the US and intends to reduce tariffs on selected products, such as cars and agricultural products. Details of the tariff reductions are not yet known. 

The deal entails further obligations for the EU. For example, the EU has committed to purchasing US$ 750 billion of energy exports from the US and investing an additional US$ 600 billion in the US. 

What does the new EU-US trade deal mean for businesses? 

According to calculations by the Kiel Institute (IfW Kiel), the general tariffs of 15 percent and the 50 percent tariffs on steel and aluminum will cause Germany's GDP to fall by 0.15 percent within a year. That would be a loss of around 6.5 billion euros. For the EU as a whole, the predicted loss is 0.1 percent. 

What should companies consider now? 

The deal brings a certain degree of certainty to the trade conflict. However, companies should not rely on the fact that no new tariffs will be threatened or imposed, as the volatile US tariff policy under the Trump administration has shown. 

We recommend the following measures: 

Check whether your products are subject to the 15 % tariff rate. If so, you may be able to reduce your customs costs by 

• using customs procedures,  
• exemption rules for preferential use,  
• optimizing import duties by recalculating the applicable customs values (e.g., first-sale principle),  
• etc. 

Who can benefit from any customs relief? 

If you are a manufacturer of potential strategic and therefore duty-free products, you should follow the publication of the agreement’s binding text in order to be able to check whether and, if so, under what conditions you can benefit from duty-free status. 

Steel and aluminum products are to receive preferential treatment. In addition to involving national and European associations in the process, we recommend monitoring legal developments. The aforementioned customs cost optimizations may also become relevant and should be examined. 

We will be happy to assist you with customs optimization, for example by: 

• Reviewing the assessment basis (customs value), also in conjunction with transfer pricing requirements 
• Classifying your goods and determining the extent to which tariff rates apply 
• Utilizing the correct, most favorable origin of goods 
• Planning and applying for customs procedures to reduce tariffs (e.g., customs warehouses, inward processing, etc.)