Reason behind the delayed announcement of the EU-US Tariff Agreement?

The European Union (EU) and the United States have reached an agreement to reduce tariffs in a long-standing dispute, marking a significant step towards strengthening economic ties between the two parties. However, the interpretation of this agreement may vary, particularly in Brussels.

Under the terms of the agreement, liquefied natural gas (LNG), oil, and nuclear fuels from the US are expected to fill the gaps created by the planned complete cessation of Russian gas and oil imports by the EU. This move is aimed at bolstering energy security for the EU.

One of the key points of the agreement is the setting of a 15 percent tariff cap on European exports to the US. This new tariff will affect several industries, including pharmaceuticals, semiconductors, and construction timber. The US is the most important export market for the German pharmaceutical industry, and the potential tariffs have sparked concerns within the industry.

The tariff rate for cars exported from the EU to the US was previously 27.5 percent, a rate that has now been reduced retroactively to 15 percent, effective from August 1, as announced by EU Trade Commissioner Maros Sefcovic. This reduction could be good news for the automotive industry, which has been impacted by the trade dispute.

Negotiations behind the scenes over the details and formulations for controversial topics continued, with the EU reportedly meeting the necessary conditions for this reduction, including initiating legislative processes for tariff reductions on certain US products.

However, it's important to note that the current EU rules on preventing the spread of misinformation on platforms like Twitter are not considered unjustified by the EU.

The development of these tariffs depends on ongoing US Section 232 investigations, with further adjustments or special rules for some subcategories expected. The EU Commission has surveyed investment intentions beforehand, but cannot ensure that European companies will actually follow through with additional investments and increased purchases of energy and weapons.

A written statement detailing the agreement took more than three weeks to materialize, reflecting the complexity of the negotiations. European companies in the pharmaceutical, semiconductor, and wood industries are already feeling the impact of the new 15 percent tariff restrictions imposed by the US as of August 7, 2025. These tariffs replace earlier lower rates and cap at 15 percent, potentially impacting European exporters' cost competitiveness in the US market.

This agreement marks a significant step forward in the relationship between the EU and the US, and both parties hope that it will pave the way for further cooperation and economic growth.