U.S.–EU Trade Deal Finalised Ahead of Tariff Deadline

27 July 2025•Article

U.S. and EU Finalize Landmark Trade Agreement Ahead of Tariff Deadline

The U.S. and EU have finalised a major trade deal, cutting tariffs and strengthening ties on energy, defence, and investment. However, global tariff changes still kick in on 1 August 2025, with limited exemptions.

In a pivotal moment for international trade, President Trump and European Commission President Ursula von der Leyen announced on Sunday, July 27, that the United States and the European Union have reached a comprehensive trade agreement, averting steep tariff escalations and ushering in a new era of economic cooperation.

Key Elements of the Agreement

Tariff Adjustments: The EU will eliminate tariffs on U.S.-origin goods, while the U.S. will impose a 15% tariff on EU-origin goods, including automobiles down from the previously proposed 30%.

Energy and Investment Commitments: The EU will purchase $750 billion in U.S. energy and invest $600 billion in U.S. industries, reinforcing strategic energy and economic ties.

Defense Procurement: The EU has agreed to acquire additional U.S. military equipment, further deepening defense collaboration.

Steel and Aluminum: EU-origin steel and aluminum will remain subject to a 50% tariff upon entry into the U.S., maintaining protective measures for domestic producers.

Urgent Reminder: Tariff Modifications Expiring Soon

As part of broader trade policy shifts, the extended modification of reciprocal tariff rates is set to expire at 12:01 a.m. ET on August 1, 2025. This affects all countries except China, Hong Kong, and Macau, whose suspension will expire on August 12, 2025.

According to guidance from U.S. Customs and Border Protection (CBP), goods entered for consumption or withdrawn from warehouse before these dates will continue to be subject to a 10% ad valorem duty under HTS heading 9903.01.25, unless exempted under specific headings.

Woodland’s compliance team urges all importers and partners to review their entries and consult with their CBP Client Representatives or their brokers for any filing concerns.

What’s Next?

While the U.S.– EU agreement has helped avoid the imposition of 30% tariffs on EU goods, the August 1st deadline remains firm. As stated by U.S. Commerce Secretary Howard Lutnick, “No extensions, no more grace periods. August 1, the tariffs are set, they'll go into place, Customs will start collecting the money and off we go”. Below you will find the original reciprocal tariff rate, 90 day paused rates, and the most current new rates come August 1st. These rates are for all countries that were announced through President Trumps letters, or trade agreements made.

Tariff rates for China, Hong Kong, and Macau will expire on August 12, 2025, with no agreement confirmed. The administration announced that Russia faces a 100% secondary tariff from September 2 unless a ceasefire with Ukraine is reached.

Woodland encourages all customers to review their import schedules and consult with compliance teams to ensure readiness for the upcoming changes. For questions or assistance, please contact the Woodland Compliance Team or your local Woodland Sales Representative.