US imposes 15% tariffs on EU exports starting Friday

On Thursday, July 31, 2025, the European Union announced that it expected the United States to impose a 15% tariff on most EU exports starting the following day. This decision comes after a political agreement between U.S. President Donald Trump and European Commission President Ursula von der Leyen, which included the implementation of duties on approximately two-thirds of EU products valued at around 380 billion euros ($434 billion). However, as of Thursday, a joint statement detailing the terms of the agreement remained incomplete. European Commission spokesman Olof Gill emphasized that the agreements made were non-binding, but the EU held a clear understanding that the U.S. would implement the 15% tariff across the board. The European Commission acts on behalf of the 27 member states of the EU and has indicated that carve-outs were negotiated for certain strategic goods such as aircraft, specific chemicals, some drug generics, and natural resources. While European wine and spirits would be subjected to the new tariff beginning Friday, there is the potential for additional exemptions to be negotiated later. Previous threats from Trump regarding higher tariffs of up to 30% had been made if negotiations did not go in the U.S.'s favor, with EU officials warning that such an increase could lead to a severe decline in trade between the two nations. In recent months, the European Commission prepared retaliatory measures valued at tens of billions of euros as a response to potential disagreements, with these measures set to be enacted if negotiations failed. Gill revealed that these countermeasures would be frozen if an agreement was finalized, suggesting that both parties were keen on reaching a mutually beneficial resolution. If everything progressed as anticipated, the implementation of additional tariffs would be avoided, reducing further strain on bilateral trade relations between the EU and the U.S. As talks continue, the situation remains fluid, and the focus remains on adequately addressing the terms of the agreement. The tariff implementation represents a significant development in transatlantic trade relations, and the decision will have far-reaching implications for businesses and consumers on both sides of the Atlantic.