Customs duties: what we know about the EU-US trade deal

The European Union and the United States sealed "the most important" trade agreement ever reached in Scotland on Sunday, July 28, according to US President Donald Trump and European Commission President Ursula von der Leyen.

The stakes were high. The world's two leading trading powers exchange nearly €4.4 billion worth of goods and services every day, and Washington was threatening to impose 30% tariffs on all European imports as early as August 1st . Here's what we know so far about this new trade deal reached with Donald Trump, following on from Japan and the Philippines a few days ago.

Negotiated fiercely for months, the agreement provides for tariffs on all European imports to the United States, at a single rate of 15%, including all existing taxes. This applies, for example, to the automotive sector, which is crucial for countries like Germany. Since April, European manufacturers have been paying tariffs of 27.5% – including a 25% surcharge imposed by Donald Trump – at a cost of €1.3 billion for the German manufacturer Volkswagen alone.

The agreement also provides for purchases of US hydrocarbons (natural gas, nuclear fuels, and oil) worth $750 billion over three years, or $250 billion per year. For the European Union, this will replace Russian gas imports and thus avoid financing the Kremlin's war in Ukraine.

It also includes new European investments in the United States worth $600 billion. The American president mentioned "hundreds of billions of dollars" in arms purchases by Europeans.

Asked about these exemptions, the American president replied: "Essentially, no." But the president of the European Commission affirmed that there would no longer be any customs duties on "strategic sectors" such as aeronautics, "certain chemical products, certain agricultural products" or even "certain strategic raw materials."

The list of these products, however, was not detailed. The Europeans also wanted to include spirits and wine, but in the absence of a final agreement, a decision was postponed until further discussions, according to Ursula von der Leyen. "This is something that must be resolved in the coming days," she assured.

Negotiations were particularly difficult regarding pharmaceuticals and semiconductors. The final agreement, according to the EU, provides for tariffs set at 15% for these two sectors. The latter were threatened with higher tariffs, some 200% according to Donald Trump, in accordance with Section 232 of a US trade law that provides for surcharges in the event of a threat to national security.

A decision is expected within two weeks, according to US Commerce Secretary Howard Lutnick, but for Ursula von der Leyen, it will have no impact on the 15% agreement reached in Scotland.

The EU is currently facing 50% tariffs on its steel exports to the United States , but the European Commission president has assured that a compromise has been reached with Donald Trump. "Between us, tariffs will be reduced and a quota system will be put in place," she said. Donald Trump, however, assured that things would remain "as they are."

This is essentially a framework agreement, according to Ursula von der Leyen, which will now require further negotiations to reach a final legal agreement.

European industrialists and farmers will also be scrutinizing the agreement to assess its sectoral consequences. The German chemical industry has already reacted, deeming the customs duties affecting it "too high," and the German Federation of Industries (BDI) predicts "significant negative repercussions."