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US finalizes 15% tariff on EU; Imposes 25% on India

Picture of Willis By  Willis  ·  1 minute read

After months of bluster and negotiations, tariffs on imports from the EU are set at 15%.

On July 27, President Donald Trump and European Commission President Ursula von der Leyen struck a trade agreement at Trump’s Turnberry golf resort in Scotland, narrowly averting a looming tariff escalation.

  • Most EU exports to the U.S. will face a 15% tariff, down from previously threatened rates of 30–50%.
  • There will be zero tariffs on certain strategic sectors—aircraft and parts, semiconductor equipment, and some farm goods.
  • Steel and aluminum tariffs (50%) remain unchanged, although the U.S. will apply quotas and potentially reduce rates in the future.
  • U.S. goods will face no EU retaliatory tariffs, and the EU will open its markets to key American exports

For e-commerce brands in the United States, the largest likely benefit of this 15% tariff is  higher cost of doing business for competitors in Europe who sell into the US. It remains to be seen if they will eat that cost or pass it on to consumers, but either outcome means U.S. products become a cheaper option for U.S. purchasers. Top EU e-commerce sectors are apparel, health and beauty, luxury, and home goods.

Of note - U.S. businesses selling into Europe won’t face a similar tariff, for now.

 

President Trump has announced a 25% tariff on Indian imports, beginning August 1.

Trump called out the United States’ good relationship with India, but said our historical trade volume was too low given India’s own high tariffs and trade restrictions. He said the U.S. trade deficit with India is too high.

Trump also said India will face an additional penalty for continuing to purchase energy and military equipment from Russia, but details on that haven’t been released yet.

India said their “government is studying” the impact of this confirmed new rate.

Unlike the EU deal, this is a unilateral tariff on Indian imports lacking significant exceptions. It’s possible the US and India will come to a softened agreement later on. But the countries clearly couldn’t negotiate a deal much better than the initial “Liberation Day” import tariff of 26%.