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Two Key Tariff Updates on the EU and India

There have been significant developments related to trade deals with the EU and India.

First, the European Commission on July 29 released a document, “EU-US trade deal explained.”

Here are some key points from the update:

Establishing a single, all-inclusive U.S. tariff ceiling of 15% for EU goods: As of 1 August, the U.S. will apply this maximum tariff on the vast majority of EU exports. It is an all-inclusive tariff rate and represents a ceiling, including the U.S. most favoured nation (MFN) tariff that was previously stacked on top of additional tariffs the US introduced.

  • The 15% ceiling applies to nearly all EU exports currently subject to reciprocal tariffs (except where the U.S. MFN tariff exceeds 15%, in which case only the MFN tariff applies with no additional tariffs on top).
  • The 15% ceiling applies also to cars and car parts, currently subject to a tariff rate of up to 25% tariff with an additional MFN tariff of 2.5%, providing immediate tariff relief.
  • The 15% ceiling will also apply to any potential future tariffs on pharmaceuticals and semiconductors, including those based on Section 232. Until the U.S. decides on whether to impose additional tariffs on these products pursuant to Section 232, they will remain subject only to U.S. MFN tariffs.

Providing special treatment for strategic products. As of 1 August 2025, U.S. tariffs on EU aircraft and aircraft parts, certain chemicals, certain drug generics or natural resources will go back to pre-January levels. This will provide immediate tariff relief for key EU industries, while the EU and U.S. agreed to keep working to add more products to this list.

Joining forces to protect the steel, aluminium and copper sectors from unfair and distortive competition. Global overcapacity threatens EU and U.S. industry alike. Together, the EU and the U.S. will establish tariff rate quotas for EU exports at historic levels, cutting the current 50% tariffs, while jointly ensuring fair global competition.

You can read the entire “EU-US trade deal explained” document here.

“The political agreement of 27 July 2025 is not legally binding. Beyond taking the immediate actions committed, the EU and the U.S. will further negotiate, in line with their relevant internal procedures, to fully implement the political agreement,” the European Commission said.

Also of note:

President Trump said his administration plans to impose a 25% tariff on products imported into the U.S. from India, starting Aug. 1.

“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” President Trump said in a social media post.

Trump also warned of a “penalty” against India for purchasing weapons and energy from Russia.