The President of the European Commission, Ursula von der Leyen, announced zero tariffs on both sides of the Atlantic on a number of products, on Sunday 27 July. However, this appears to be far from guaranteed.
In an explanatory note published on Tuesday 29 July, the European Commission instead indicates that US tariffs on certain products in the aviation, chemicals, generic medicines and natural resources sectors will “go back” to the pre-January 2025 level. According to the European Commission, this represents a return to the US ‘MFN’ tariff, which was the same for everyone and which averaged 4.8% in 2024.
Asymmetrically, the EU undertakes to abolish its existing - very low - tariffs on industrial products. In addition, certain US fish products - Alaska pollock, Pacific salmon and shrimp - will be able to benefit from “better” access to the European market.
The same applies to certain US agricultural products described as “non-sensitive”: soya bean oil, seeds, nuts and processed foods such as ketchup, cocoa and biscuits.
The details of this expanded access have yet to be worked out, as have the exact rates and quotas on the US side. The wine and spirits, steel and aluminium, and pharmaceuticals sectors are still in the dark at this stage.
For the EU, the 15% rate is in any case the ceiling that must not be exceeded. “We are doing everything we can to ensure that important sectors are not captured by the across the board tariff (15%, editor’s note) but are rather at low or no tariff”, added the Commission’s spokesperson on trade issues, Olof Gill.
Non-tariff barriers. In its fact sheet, the White House said that the EU would “work to address a range of U.S. concerns related to various EU requirements that are burdensome to U.S. exporters”.
For its part, the Commission is adamant that it will not budge on its current rules on import standards. In its explanatory note, it explains that the EU and the US will cooperate on automotive standards, sanitary and phytosanitary (SPS) standards, and facilitate mutual recognition of conformity assessments in additional industrial sectors.
Nor does the EU intend to change its rules on digital technology, says the Commission. Mr Gill confirmed that the EU would indeed refrain from adopting network usage charges or customs duties on electronic transmissions. And he added: “That does not impinge on our rules or our regulatory space and that is also true for SPS, food standards, etc.”
Uncertainties over the timetable. The EU expects the White House to issue executive orders in the next few days so that the 15% tariff comes into force on 1 August. It will then be able to take the announced measures and also cancel its countermeasures, which are due to come into force on 7 August. Before initiating this procedure, the Commission is waiting for certainty about the measures adopted on the other side of the Atlantic. See the Commission’s explanatory note: https://aeur.eu/f/i1g and that of the White House: https://aeur.eu/f/i1h (Original version in French by Léa Marchal)